Sunday, August 30, 2009

A Warning From Tong Herr?

On Business Times the following news clip on Tong Herr caught my attention.

  • Tong Herr says EC begins anti-dumping probe

    Published: 2009/08/29

    Tong Herr Resources Bhd, a Malaysian-listed maker of iron and steel bolts, is seeking legal advice after the European Union began an anti-dumping and anti-subsidy proceeding, according to a statement.

    The probe concerns imports of stainless steel fasteners and parts from India and Malaysia, according to a company statement yesterday. The statement didn’t say whether Tong Herr was identified in the proceeding. -- Bloomberg

This reminded me of 2003.

Now I wrote in a posting on Tong Herr here

And what was the end result? Well if you look at the top of the posting, there's a table posting. For fy 2003, Tong Herr earned some 19.868 million and the year after the the expiry of the anti-dumping ruling, Tong Herr's earnings soared to 43.9 million!

Would one say that the lifting of anti-dumping measures helped Tong Herr a lot?

If you click on the above Bursa announcement from Tong Herr back in 2003, it said the following.

  • In February 1998, the European Commission vide Council Regulation (EC) No. 393/98 imposed definitive anti-dumping duties on imports of stainless steel fasteners and parts originating in the People’s Republic of China, India, Malaysia, the Republic of Korea, Taiwan and Thailand. The duties imposed on the stainless steel fasteners imported from these six countries ranged from 2.7% to 74.7%. Tong Herr Resources Berhad’s (“THR”) products were imposed a duty of 7% which is amongst the lowest.

    THR had on 27 March 2000 announced that European Communities (EC) had published in its official journal dated 24 March 2000 under Commission Regulation (EC) No. 618/2000 of 22 March 2000, an imposition of a provisional countervailing duty on imports of stainless steel fasteners originating in Malaysia and the Philippines.

    The EC had imposed a provisional countervailing duty set at 4.5% on Tong Heer Fasteners Co. Sdn Bhd, a subsidiary of the Company, with effect from 24 March 2000.

    Pursuant to the announcement made on 27 March 2000 pertaining to the “provisional countervailing duty” imposed by EC, EC had later published in its official journal dated 14 July 2000 under Council Regulation (EC) No. 1523/2000 of 10 July 2000, on the imposing of a “definitive countervailing duty” on imports of stainless steel fasteners originating in Malaysia and Philippines. The EC had imposed a definitive set at 1.8% on THR’s wholly owned subsidiary, Tong Heer Fasteners Co., Sdn Bhd, with effect from 15 July 2000. Accordingly, the “definitive countervailing duty” shall supersede the “provisional countervailing duty.”

    Today, Tong Herr Resources Berhad wishes to announce that it has received a letter from the Ministry of International Trade and Industry informing the Company that the definitive countervailing duty and definitive anti-dumping duty imposed by the EC have expired on 17 and 21 February 2003 respectively.

    The Company is of the opinion that the expiration of the measures will have a positive effect against the Company’s sales to Europe.

Now the EU wants to begin anti-dumping and anti-subsidy back again!

Would this be a huge bad news for Tong Herr?

On the side note, Tong Herr reported earnings last night and it posted some minor losses of 869k.

And for the record Tong Herr last traded at 1.99.


jitseng said...

a good report.Thankyou.