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China Zhongwang denies U.S. accusations it dumped aluminum extrusions
October 27, 2015 / 1:22 AM / 2 years ago

China Zhongwang denies U.S. accusations it dumped aluminum extrusions

HONG KONG, Oct 27 (Reuters) - China Zhongwang Holdings Ltd , the world’s second largest producer of aluminum extrusions, denied U.S. accusations it had evaded import duties, saying its export business had been conducted in strict accordance with rules in China and overseas markets.

The accusations are the first formal U.S. move to curb China’s aluminum exports, which U.S. producers say have grown steadily over the past year.

In a petition filed with the U.S. Commerce Department last Thursday, the U.S. Aluminum Extruders Council (AEC) asked the government to clarify that pallets and 5050 alloys are subject to antidumping and countervailing duties introduced in 2011. That ruling marked a major victory for U.S. extruders that argued Chinese exports were unfairly subsidized.

Zhongwang Chairman Liu Zhongtian said in a statement that the accusations had “neither factual nor legal foundations”, adding that the company’s deep-processed products and 5050 alloy extrusions did not fall within the scope of those duties.

Extrusion is the process of shaping aluminum, by forcing it to flow through an opening in a die.

The allegations come months after short-seller Dupre Analytics alleged Zhongwang inflated sales by sending shipments to companies it controls offshore, which the company dismissed as “groundless or untrue.”

At the time, the AEC called on several governments to investigate the claims. (Reporting by Donny Kwok; Editing by Edwina Gibbs)

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