India begins review of anti-dumping fines against Chinese molding machines

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 13, 2014 4:44 pm ET
Updated: May 14, 2014 11:05 am ET

Image By: Ferromatik Milacron India Pvt. Ltd. Ferromatik Milacron India Pvt. Ltd. is one of four injection molding press makers in India encouraging India to keep anti-dumping tariffs in place.

Related to this story

Topics Public Policy, Asia, Injection Molding, Machinery
Companies & Associations Milacron LLC, Toshiba Machine Co. Ltd.

India’s government has begun a review of the steep anti-dumping tariffs it put on Chinese-made injection molding machines in 2009, after four of the largest Indian press manufacturers urged that the duties remain in place.

The May 9 announcement from India’s Ministry of Commerce and Industry said that four press makers with factories in India have asked the government to continue the tariffs — Toshiba Machine (Chennai) Pvt. Ltd., Ferromatik Milacron India Pvt. Ltd., Windsor Machines Ltd. and Electronica Plastic Machines Ltd.

The original decision levied tariffs of up to 223 percent on Chinese-made molding machines, from 40-1,000 metric tons of clamping force, and prompted strong protests from China’s industry and government because it effectively closed India’s market to them.

The Indian government’s announcement of a review was largely expected because the original tariffs put in place in 2009 were due to expire May 12. But it seems likely to set off some strong lobbying in the next few months as the review is conducted.

The Ministry’s statement does not indicate which way it will rule, although it noted that the four companies filed an application “alleging likelihood of continuation or recurrence of dumping of the subject goods.”

One prominent Indian injection molding executive and trade association leader said he will vigorously push to have the anti-dumping duties removed.

Raju Desai, director of Jyoti Plastics Works Pvt. Ltd., said his cause could get a boost from India's parliamentary elections this month, which are widely expected to deliver the prime minister's office to Narendra Modi.

“We are hopeful of getting [the duties] removed,” Desai said in an email to Plastics News. “We are going to take it up strongly once the new government is in place.”

Desai said prices and delivery times with local machines are not favorable to Indian injection molding companies, and Indian machinery manufacturers do not have as much of a “total solution approach” in their products.

Desai, who is a past president of the All India Plastics Manufacturers' Association, said he expected that Mumbai-based group to lobby in favor of scrapping the duties.

The head of the Plastics Machinery Manufacturers Association of India, on the other hand, has said he expects the government to continue the tariffs.

Mahendra Patel, who is also chairman of Mamata Machinery Pvt. Ltd., said in an interview at the Plastivision show in Mumbai that the Indian industry has "reported very strongly and we have all positive signals.”

Patel could not be reached and an official with the New Delhi-based PMMAI declined to comment.

Reached by telephone, the managing director of Toshiba’s Chennai factory, P. Kailas, said he was not sure what the government would decide. But he said that if the tariffs are continued, the rates of the penalty duties could change.

The chairman of the China Plastics Machinery Industry Association, Borch Zhu, could not be reached for comment but he had said in an interview at the Chinaplas show last month that the Chinese industry opposed the tariffs continuing, although he suggested it could be difficult for the Chinese industry to win.

Image By: Steve Toloken Borch Zhu

Zhu estimated that the tariffs raise prices 20 percent for Indian companies buying injection molding machines, and ultimately harm the Indian processing industry.

He is also president of the Guangzhou-based injection molding machinery maker Borch Machinery Co. Ltd.

The Indian government announcement said that companies and interested parties have 40 days from the publication of the announcement to submit comments. Industry officials said it could take several months for a final decision.

One well-placed Chinese industry official said Chinese companies met with their government in early April to prepare.

This source noted that two of the Indian petitioners — Toshiba and Ferromatik Milacron — were global companies that also had factories in China, and were able to benefit from China’s open policies toward foreign equipment makers.

 “But now, to protect their private profit, they use the government to close their market,” the source said.

Japan’s Toshiba Machine Co. Ltd. bought the Chennai factory from Indian conglomerate Larsen & Toubro in 2012, and the Ferromatik Milacron India factory is a unit of U.S.-based Milacron LLC. Both companies have said recently they plan to expand their Indian operations.


Comments

India begins review of anti-dumping fines against Chinese molding machines

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 13, 2014 4:44 pm ET
Updated: May 14, 2014 11:05 am ET

Post Your Comments


Back to story


More stories

Image

Poor plastic coating prompts cable recall

August 29, 2014 2:10 pm ET

Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), has ordered a major recall of 2,485 miles of electrical ...    More

Image

Baxter investing $300 million to expand dialyzers production in Alabama

August 29, 2014 12:53 pm ET

Baxter International, Inc. is expanding its Opelika, Ala. manufacturing location to boost production of dialyzers, a key component of hemodialysis...    More

Image

Obituary: Jerry Williams, Prism Plastics co-owner

August 29, 2014 8:50 am ET

Williams founded Prism Plastics with Rod Bricker and Gerry Phillips, after the three left Huron Plastics Group in 1999.    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Haitian's standardization efforts paying off

August 29, 2014 9:53 am ET

Streamlined design efforts and robust export sales helped propel Ningbo, China-based injection molding machine manufacturer Haitian International Hold...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events