Fortress Paper recently announced that the antidumping duty imposed by China's Ministry ofCommerce ("MOFCOM") on dissolving pulp imports to China from Canada, the United States and Brazil has remained unchanged since its imposition.
As a result, the dissolving pulp exports from the company's subsidiary Fortress Specialty Cellulose (FSC) to China remain subject to a 13% duty, which would cost FSC around EUR 15 million annually in lost revenues. More than 300 jobs at the Fortress Specialty Cellulose Mill at Thurso in Québec, Canada, are at risk.
"We trust that the Chinese government will correct the situation as the antidumping duty does not comply with international law and World Trade Organization rules and has not resulted in any positive effect on the local price. In light of the negative impact of the duty on Canada's dissolving pulp producers since the duty was first imposed, we continue to petition the Government of Canada to intercede on behalf of the industry to seek resolution with the Chinese government. In the meantime, we continue to mitigate the effects of the duty by undertaking cost-cutting initiatives at the Fortress Specialty Cellulose Mill," said, Chadwick Wasilenkoff, CEO, Fortress Paper.
Fortress Paper continues to evaluate its options in response to the antidumping duty, as the Company's management believes the duty was determined in a manner contrary to international law. Specifically, management believes that China's domestic dissolving pulp industry, which petitioned the investigation into dissolving pulp imports, suffered no injury as a result of imported pulp.
