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June 4, 2012 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in
China, today announced that the anti-dumping duties imposed on the company's exported biaxially oriented polyethylene-terephthalate (BOPET) films to
South Korea will be extended for three more years beginning on
May 25, 2012.
According to the Ministry of Strategy and Finance, the rate for Fuwei Films Shandong Co., Ltd ("Shandong Fuwei"), the subsidiary of Fuwei Films was set at 11.72 percent, higher than one of its counterparts at 5.87 percent. Punitive duties of 25.32 percent will be imposed on the PET films manufactured by six Chinese firms. The rate for the remaining Chinese manufacturers was set at 23.61 percent.
In addition, the anti-dumping duties of 14.63 percent and 25.32 percent were slapped on products produced in
June 22, 2011, Ministry of Strategy and Finance Republic of Korea initiated a sunset review on the need for the continued imposition of an anti-dumping duty on importers of the BOPET Film originating from
the People's Republic of China and
India. Eight Chinese exporters, including Fuwei Films, were required to participate in the review.
In 2007, the Korean Trade Commission ("KTC") conducted an antidumping investigation of BOPET films originated from
India. The final determination was made in
September 2008, at which time the anti-dumping duty ("ADD") rate for Fuwei Films was set at 5.67%.
In 2011, Shandong Fuwei's export value to
South Korea accounted for approximately 27% of its total export, representing less than 8% of our total sales.
Xiaoan He, Chairman and CEO, said, "We have been subject to anti-dumping duties for films exported to
South Korea since 2008. This recent decision announced by the Ministry of Strategy and Finance of
South Korea will continue to impact Fuwei's export volume to
South Korea, but as the holder of one of the lowest rates, the impact should be less significant on Fuwei Films. Fuwei Films remains committed to our ongoing overseas sales strategy in addition to our focus on the Chinese domestic market."
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (
Shandong) Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include both the possible delisting of the Company's ordinary shares from the NASDAQ Global Market; competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in
China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.
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