Xiang Lu Launched The Largest Anti-Dumping Case In History, Amounting To $3 Billion 600 Million.

Yesterday, the Xiamen Municipal Economic Development Bureau announced.

The anti dumping case, which was brought up by the Xiamen Xiang Lu Petrochemical Company and involved in the case, amounted to US $3 billion 600 million, is the largest case involving international anti-dumping history. It once stirred Korean President Lee Myung-bak to note the Chinese ambassador to Korea.

"It's really not easy to get the final result now," Liu Dewei, general manager of Xiang Lu Petrochemical Company, said yesterday.

It is reported that in recent years, domestic

Against this background, with the support of the Xiamen municipal government, Xiang Lu Petrochemical contacted the same industry - Zhejiang Yisheng Petrochemical Company and Hualian three Xin, jointly launched the classic anti-dumping case.

For the final decision of the Ministry of Commerce, Liu Dewei happily counted out an account for reporters. The output value of Xiang Lu is now estimated at 10 billion yuan, which means that Xiang Lu has recovered at least 200 million yuan to 2 billion yuan price gap and has greatly increased its profitability.

In this regard, Ke Jian, deputy director of the Xiamen Municipal Bureau of economic development, said that over the years, enterprises in Xiamen have been struggling to cope with the anti-dumping investigations of various countries. They have tasted bitter and bitter taste. "As the first enterprise in the city to file anti-dumping complaints against foreign imports, this battle is a classic."

Event decryption

In the eyes of the outside world,

It is no stranger to anti-dumping. Since Xiamen's first color TV was subjected to EU anti-dumping in 1988, more than 10 kinds of products, such as canned mushrooms, bicycles, energy saving lamps, stone products, shopping bags and wooden furniture, have been subjected to foreign anti-dumping.

But anti-dumping against imported products, Xiang Lu Petrochemical is the first to eat crabs, and its experience of winning the tough battle is quite valuable.

Spread to the 10 industry in the province

Xiang Lu Petrochemical personage introduces, before antidumping, the price of products from Korea and Thailand is lower than domestic 15 - 20 dollars.

Arguably, the labor cost of South Korea and other countries is not low, and its pportation to China still needs a lot of pportation costs. Why is the selling price less than domestic?

"South Korea and Thailand have overcapacity in China and need to sell a lot of PTA to China."

He Yong, director of Xiamen antidumping center, revealed that according to early warning system monitoring, this product exports to China "volume increase and price drop", and there is suspicion of dumping.

At this time, coupled with the impact of the financial crisis, not only Xiang Lu Petrochemical encountered the loss of the plight, but also the domestic PTA industry full industry losses, 2008 Hualian three Xin - the largest domestic PTA factory was forced to restructure.

Taking Fujian directly related to PTA output value of more than 30 billion yuan, this directly affects about 100 thousand of the total number of employed people.

"The main reason is mainly due to the massive dumping of PTA from Korea and Thailand."

Xiang Lu Petrochemical thinks.

Encountering internal and external pressures

Because of the huge number of cases involved, the case has caused great waves at home and abroad.

"It can be said that at the very beginning, investigation and evidence collection was almost impossible."

Liu Dewei said that PTA is very difficult to investigate and collect evidence compared to other varieties, involving different price systems in the internal and external markets, and in different price systems of spot and contract.

Coupled with the impact of the macroeconomic environment, foreign countries frequently accuse our country of engaging in trade protection, and even exerting pressure on China through diplomacy.

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In addition, it is concerned that "once anti-dumping is established, imported products will be subject to anti-dumping duties and domestic PTA prices will rise." downstream industry chain companies have expressed their opposition or support for PTA's anti-dumping.

This brings double pressure to the initiator.

However, with the help of relevant government departments and associations, the Ministry of Commerce has finally concluded that dumping has caused substantial damage to domestic industries, and there is a causal relationship between dumping and substantial damages.

Xiang Lu benefited hundreds of millions of yuan.

The case has been temporarily defeated by the Korean side and Thai side, and the industry of Xiang Lu Petrochemical has benefited greatly.

After the anti-dumping duty is imposed, the price of 8000 yuan / ton of the product is taken as an example, which means that the Korean side and Thai side will be charged 160 yuan to 1600 yuan per ton.

"To put it this way, this makes our products competitive and even reverses the price advantage, so that many customers turn to domestic products."

Xiang Lu Petrochemical Related Parties admitted that Xiang Lu benefited hundreds of millions of yuan.

It is reported that Xiang Lu not only turned a strong profit last year, but this year's profit is expected to exceed 900 million yuan, the two phase of Xiang Lu petrochemical project was restarted in 2009, and it is expected to be put into operation in mid 2012, and new recruits will be recruited.

While looking at the domestic industry, the industry has benefited from anti-dumping cases, and many projects that failed to start in time have speeded up the pace of production. The original shelved projects have been re prepared for construction.

"For the downstream operators who were worried, the price of the products has not increased. In the process of increasing domestic production and reducing imports, the PTA contract price is more fair and reasonable, and the procurement cost of PTA raw materials is reduced by more than 100 yuan / ton."

Related aspects.

"Trader Liu Dewei":

The most correct choice is made at the most critical time.

For the anti-dumping case related to the development prospect of Xiang Lu Petrochemical Company, Liu Dewei, the head of Xiang Lu Petrochemical Company, knows every detail.

"At the most critical moment, we make the right choice at the most appropriate time."

Liu Dewei admitted to reporters.

Reporter: what is the key to winning the anti-dumping war? Liu Dewei: we can say that the timing of our election is just right.

Not only under the financial crisis, the domestic industry has been hit hard, but the time of collecting evidence also indicates the existence of dumping.

Of course, there is a very important background. After the outbreak of the financial crisis, the market demand of the global downturn led to the dumping of foreign excess capacity into China's market, and foreign countries frequently launched anti-dumping against China. At that time, the impact on domestic industry interests became increasingly prominent.

Reporter: Xiang Lu spent time and energy in anti-dumping, and the benefit is also immediate. Is that a very cost-effective strategy?

Liu Dewei: in 2008, Xiang Lu Petrochemical lost 700 million yuan, making a profit of 730 million yuan last year.

In fact, it is not only the benefit of the Xiang heron, because the export of PTA in South Korea and Thailand is restrained, and its domestic dumping behavior is also convergent, and about about 15000000 tons of the original stagnated or cancelled projects in China have been reactivated.

Reporter: what successful experiences can be shared by the enterprises?

Liu Dewei: there are several main points: first, the joint industry, through industry associations, adhere to joint action; second, anti-dumping litigation is a time-consuming and energy consuming process, the process is more cumbersome, requiring special responsibility; third, anti-dumping is only a means, not a goal, enterprises can temporarily protect the interests of domestic industry through trade remedy, but the most important thing is to improve their own business level and enhance competitiveness.