Innophos expands in US after ITC trade ruling

29 February 2008 18:20  [Source: ICIS news]

TORONTO (ICIS news)--Innophos is expanding capacity at a plant in Chicago by 15% after a favourable anti-dumping ruling this week on imports of sodium hexametaphosphate (SHMP) from China, the US-based producer said on Friday.

 

The company did not detail capacities or investment costs for the expansion.

 

Innophos' share price was down 1%, to $13.84, in early Friday afternoon trading in New York.

 

“This ruling will neutralise the dumped pricing and enable future competition on a level playing field," said Tim Treinen, Innophos vice president for performance chemicals.  

 

The US International Trade Commission (ITC) earlier this week voted unanimously that US SHMP producers had been injured by Chinese producers pricing below fair value, constituting dumping under international law.

 

With the ITC ruling, imports of SHMP from China are subject to an anti-dumping duty of 188%, following a preliminary anti-dumping duty of 183% imposed in September last year, Innophos said in a statement.

 

Chinese SHMP producer Hubei Xingfa was subject to the full 188% rate while the duty for two smaller Chinese SHMP exporters - Jiangyin Chengxing – was 92%, Innophos added.

 

US producers Innophos and ICL Performance Products, a St. Louis Missouri-based subsidiary of Israel Chemicals, had filed petitions against dumping from China because producers there were subsidised by government policies and tax incentives.

 

As a result, Chinese producers had captured a substantial market share.

 

However, following September’s preliminary 183% duty, Chinese producers had virtually stopped exporting to the US, enabling Innohpos to recover volumes and prices, Treinen said, and added: "The anti-dumping duty process works.” 

 

Spokespeople for New Jersey-based Innophos were not immediately available for additional comment.

 

Innophos – formerly the phosphates business of French producer Rhodia – last week reported sales of $579m (€382m) for 2007, up 7% from 2006.

 

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.

 

($1 = €0.66)

By: Stefan Baumgarten
+1 713 525 2653

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