Canada's government is investigating alleged dumping of polyisocyanurate thermal insulation board imported from the United States. Exeltherm Inc., Canada's larg-est producer of polyisocyanurate insulation board, which is used in roofs and walls, sparked the investigation by complaining that dumped U.S. imports are hurting its business.
Revenue Canada, the federal tax and customs agency, will investigate imports of the products for the six-month period ended June 30. If it finds products were dumped and hurt the Canadian industry, it will levy import duties equal to the margin of dumping.
A preliminary study indicated average dumping margins of 16 percent for the period of the investigation.
Exeltherm, based in Cornwall, Ontario, began production of polyisocyanurate board in 1994 after Domtar Inc. of Montreal sold its Cornwall plant to employees. Domtar formerly made phenolic board insulation there. Exeltherm said it accounted for more than 50 percent of Canadian production last year. The country's three other producers support its complaint of dumping.
Jared Blum, president of the Polyisocyanurate Insulation Manufacturers Association in Washington, declined comment on the investigation. PIMA does not get involved in legal issues, he said. Exeltherm, its lawyers and other Canadian producers did not return telephone calls to comment.
Canada's market for polyisocyanurate insulation grew rapidly after it displaced phenolic types in 1994. Revenue Canada's preliminary study indicated Canada's market for polyisocyanurate insulation was about 207 million board feet last year, including imports. It identified 51 potential exporters of the material in the United States and 180 potential importers in Canada.