PETpla.net Insider 12 / 2010

MATERIAL / RECYCLING 16 PET planet insider Vol. 11 No. 12/10 www.petpla.net Zanchi attacks anti-dumping measures at PET days “Increase in duties could threaten jobs” PETday, organised by Global Service International S.R.L. (GSI) in Artimino near Florence/Italy, has been held annu- ally since 2003 and since its inauguration it has become the major sector event for PET processors. This year 153 delegates from 26 countries and four continents found their way to Artimino. As Francesco Zanchi, CEO of GSI, which is headquartered in Rescaldina/Milan (Italy), was quick to emphasise, the delegates represented companies that pur- chase around eight million tonnes of PET each year. In his introduction, Francesco Zanchi informed delegates that world- wide PET requirement was set to grow by one million tonnes in 2010 and thus by around 6% by comparison to 2009. However, the requirement in Europe and the USA will see only a moderate rise due to the use of recyclates and as a result of lighter weight bottles. The picture is very different in Asia. This is due to the immense PET consump- tion of China, which alone accounts for 45% of the worldwide growth in PET. Nevertheless, according to Zanchi, a number of new PET facilities will be commissioned in 2011 and 2012, chiefly in Asia and the Middle East so that the increased requirement should not lead to any shortage. This is of course pro- viding that the raw materials are readily available. Zanchi went on to highlight a par- ticular problem resulting from the fact that the largest production capacities are already to be found in the Middle East and Asia. He pointed out that, with the proposed increase in capacity, the worldwide significance of these regions as important PET suppliers is set to increase even further. The CEO of GSI drew attention to the threat of possible anti-dumping measures which may be introduced by the EU, and the implica- tions of this for the European market. Anti-dumping duties (AD) and compensating tariffs against subsidisa- tion measures (so-called Antisubsidy or Countervailing Duties (CVD) are levied by the EU on PET that is produced by certain non-European countries or companies. In the short term these measures act to the disadvantage of the non-European manufacturing com- panies but in the long term, they form a competitive disadvantage for European PET converters who purchase PET of non-European origin. Non-European PET is subject to duties which therefore increase the price of the material. Partial success against antidumping activities In September 2009 the EU Com- mission examined the measures in place affecting PET originating from the United Arab Emirates (UAE), Iran and Pakistan. In the summer of 2010 duties on imports from these countries were temporarily imposed. Following this move, more than 70 EU-based PET converters which purchase a total of around 2.7million tonnes of PET each year and represent 83% of the PET market in the EU lobbied the European Commission to try to persuade them not to enforce these planned anti-dumping measures. They were supported by the Belgian law firm Van Bael & Bellis and Global Service International S.R.L. Some success was achieved through this action. Instead of anti-dumping duties, reduced countervailing duties were levied on PET from the specified countries. The result has been that, World PET demand. The worldwide requirement for PET has been characterised by continuous growth. In 2010 too the requirement will exceed that of the previous year – namely, by 1 million t or 6%. (Source: Tecnon Orbichem / GSI) World PET capacity’s new wave of investments. In 2011 and 2012 new production plants will be commissioned – especially in the Middle East and in Asia. Follow- ing a range of shutdowns of production capacity in 2009 this is very important so as to enable the demand for PET, which is continuing to increase worldwide, to be accommodated. (Source: Tecnon Orbichem / GSI)