CRANBURY, N.J., Feb. 28 /PRNewswire-FirstCall/ -- Innophos Holdings, Inc. announced today that the US International Trade Commission (ITC) voted unanimously that the US sodium hexametaphosphate (SHMP) industry has been "injured" by Chinese producers pricing below fair value, which constitutes "dumping" under applicable international law.
The ITC ruling now applies the duties established by the US Department of Commerce on January 28, 2008 of 188% for the Chinese SHMP producer Hubei Xingfa, and 92% for two other minor SHMP exporters, Jiangyin Chengxing Sichuan and Mianshu Norwest. The whole country rate was set at 188%, and applies to all other imports of SHMP from China.
SHMP is used as an anti-microbial adjunct in beverages, for tartar control and as a whitening agent in oral care products. Its industrial applications include dispersing paper coatings and controlling lead in water treatment systems, among others.
Tim Treinen, VP - Performance Chemicals at Innophos stated, "We filed our petition in early 2007 against dumping practices from China where production costs are highly subsidized by government policies and tax incentives. Imports of Chinese SHMP selling at prices less than fair value led to the Chinese producers capturing a substantial market share. This ruling will neutralize the dumped pricing and enable future competition on a level playing field."
Treinen continued, "The antidumping duty process works. A preliminary antidumping duty of 183% on Chinese SHMP was imposed in September 2007. Since that time, Chinese producers have virtually stopped exporting to the US. This has allowed Innophos to recover sales volumes and prices. Innophos is now implementing a 15% expansion of capacity at the Waterway plant in Chicago."
The antidumping law requires at least 50% of the domestic industry to support the case. Innophos and another domestic producer were represented by James R. Cannon, Jr., partner of Williams Mullen, Washington, D.C.
About Innophos Holdings, Inc.
Innophos Holdings, Inc. (http://www.innophos.com/), the holding company for a leading North American manufacturer of specialty phosphates, serves a diverse range of customers across multiple applications, geographies and channels. Innophos offers a broad suite of products used in a wide variety of food and beverage, consumer products, pharmaceutical and industrial applications. Innophos' market-leading positions derive from its experience and dedication to customer service and innovation. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations in Nashville, TN; Chicago Heights, IL; Chicago (Waterway), IL; Geismar, LA; Port Maitland, ON (Canada); and Coatzacoalcos, Veracruz and Mission Hills, Guanajuato (Mexico).
'IPHS-G'
