FIPCO says anti-dumping duties imposed on imports of PVC-coated fabrics

Logo of Filling & Packing Materials Manufacturing Co. (FIPCO) 

Filling & Packing Materials Manufacturing Co. (FIPCO) announced the decision of the General Authority of Foreign Trade (GAFT) No. (2) dated Dec. 12, 2024 and published in the official newspaper, Umm Al-Qura, on Dec. 16, 2024, to impose final anti-dumping duties on the imports of PVC coated fabrics from China and South Korea for five years starting from Dec. 17, 2024.

In a statement to Tadawul, the company said that the rationale for the aforementioned decision included the findings of the Trade Remedies Deputyship (TRD) at GAFT that there was a significant increase in the volume of dumped imports in absolute terms and relative to local production and that these imports had negative price impacts on the locally manufactured product.

It also concluded that these imports had negative effects on the economic factors and indicators of the local industry during the investigation period as there was a price difference between the similar product and the product under investigation and effects for local price capping.

Meanwhile, the negative impact included a decrease in productivity, local sales and local market share, as well as limited employment and inability to job creation leading to higher losses.

This also resulted in lower ROI, negative cash flow, inability to capital increment, lack of growth and identified presence of dumping margins.

The investigations also identified the causative connection between the dumped imports and the harm to the local Industry.

Imposing anti-dumping duties is expected to contribute to creating a fair competitive environment in line with international trade regulations, thereby improving the company's local market share, the company said. However, the financial impact has been too difficult to de determined recently due to market conditions and might be defined later after studying all market variables according to the consequences of the decision and its implementations.

FIPCO will announce any relevant developments when applicable and based on materiality and significance on due course.

This decision comes into action as a result for the company’s efforts exerted more than two years, as the company formed an internal project teamwork to reduce costs, in order to conduct search, trace, and collect evidence and proofs, answer the question and provide documents requested by GAFT and arrange to reply for the reports and memos conducted by the dumping companies and their attorneys.

According to data compiled by Argaam, GAFT decided on Nov. 30 to investigate a claim filed by FIPCO's affiliate, FPC Industry Co., to take anti-dumping actions against imports of PVC-coated textiles and fabrics.