EU anti-dumping tariffs cause job losses and economic decline
A decision by the European Commission (EC) is causing existential economic difficulties for our member companies and the entire refractory industry:
In an anti-dumping investigation, the EC wants to raise tariffs on a raw material from China (fused alumina = ‘corundum’) that is urgently needed by our companies by 136 percent. This was triggered by a demand from the French company IMERYS to force Chinese competition out of the market. This means that these Chinese raw materials are no longer economically viable.
We are stunned by the level of the planned tariffs.
The consequences for our members would be dramatic: rising costs, production shutdowns or even job losses.
The violation of EU interests:
Trade policy protection measures are intended to promote and protect the competitiveness of EU industry. The impending tariff increase would merely protect the French company IMERYS, while penalising the refractory industry in Germany and the EU.
The consequences: distortion of competition, monopoly formation, supply risk, declining tax revenues, job losses.
- This decision would further strengthen IMERYS' market power – to the point of a quasi-monopoly. It is not possible to source raw materials from other sources worldwide in terms of quality and quantity.
- These effects pose an existential risk for medium-sized manufacturers with only one production site. Multinational companies would be forced to relocate their production outside the EU – with the dramatic result of plant closures in Germany, declining tax revenues and job losses.
- The world-leading German refractory industry would suffer considerable and irreparable damage. Capacities and know-how would be almost impossible to restore, which would make Europe dependent on imports in the long term.
- Refractory companies will not be able to pass on cost increases. The main customer group, steel – the largest customer with over 60 per cent – is experiencing a prolonged recession in Germany and the EU, coupled with significant transformation costs due to CO₂ reduction measures. It will resist any attempt to raise prices and immediately import cheaper products from other EU countries.
- The refractory market in Europe is open and highly competitive. Non-EU competitors who are not subject to this tariff surcharge will have an immediate and significant price advantage over EU manufacturers.
Conclusion:
Against this backdrop and in view of the economic risks to the German refractory industry, we must strongly oppose the planned introduction of anti-dumping measures against imports of corundum from China.