ExxonMobil 'disappointed' over India findings on PP dumping

19 June 2009 05:44  [Source: ICIS news]

(Recasts eighth paragraph for clarity)

By Bohan Loh

SINGAPORE (ICIS news)--ExxonMobil has on Friday expressed disappointment over India’s proposed levying of provisional anti-dumping duties (ADD) on polypropylene (PP) imports that would hit the petrochemical giant’s polymer business in Singapore.

India’s Anti-dumping Authority (ADA) has initially established that Saudi Arabia, Oman and Singapore have been dumping PP into the country and must be curbed through imposition of ADDs.

“We are disappointed with the preliminary findings of the Indian anti-dumping authorities,” an ExxonMobil spokesperson told ICIS news.

ADA recommended ADDs ranging from $44.40/tonne (€31.97/tonne) to $1,033.65/tonne on homo-polymers of propylene and copolymers of propylene and ethylene imports from the three countries.

The circumstances when the duties would apply to products of particular companies were specified in ADA's report that was submitted to the Ministry of Finance on Wednesday. (See the table below.)

In the case of ExxonMobil Chemical Asia Pacific (EMCAP), its PP shipped to India would be slapped with duties of $44.43/tonne.

“Our position is that EMCAP had not, at any time, engaged in the dumping of polypropylene products in India,” she said.

The company’s PP exports from Singapore accounted for less than 2% of India's market demand in 2008, she added.

“Going forward, we will continue to engage and cooperate with the Indian authorities, so that the Indian authorities would have access to the information necessary to make a fair assessment of EMCAP’s business in its final findings,” the spokesperson said.

ExxonMobil operates a petrochemical facilty in Singapore that includes a 900,000 tonne/year cracker, a 480,000 tonne/year polyethylene (PE) plant as well as a 275,000 tonne/year polypropylene (PP) unit. Polymer products from the facility were mostly exported.

“It is EMCAP’s business policy to supply polypropylene to all markets, including India, at internationally competitive prices and in full compliance with local laws,” said the spokesperson.

India had launched the anti-dumping investigation in February this year following a petition filed by major PP producer Reliance Industries Ltd (RIL), a move that was supported by Haldia Petrochemicals Ltd (HPL).

RIL and HPL are the only two domestic PP producers in India.

The petition was met with strong objections from PP exporters, including ExxonMobil, as well as PP converters, who maintained that no basis to call for anti-dumping investigation.

“ExxonMobil Corporation and its affiliates are committed to operating ethically, responsibly and in full compliance with the law, in every part of the world where we have a presence,” the spokesperson said.

 

 

Source: India Ministry of Commerce and Industry

($1 = €0.72)

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Author: Bohan Loh
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