KUALA LUMPUR (Aug 9): The Ministry of Investment, Trade and Industry (Miti) has initiated an anti-dumping duty investigation on polyethylene terephthalate (PET), a type of synthetic fibre, originating or exported from China and Indonesia, following a complaint by a local manufacturer.

Miti said the government had received a petition from domestic producer Recron (M) Sdn Bhd — which is part of Reliance Group, one of the world’s largest integrated polyester and textile companies — requesting the investigation.

"The petitioner (Recron) alleged that imports of the subject merchandise originating or exported from PRC (China) and Indonesia were sold at a price much lower than their domestic selling price in PRC and Indonesia (dumped price)," the ministry said in a statement on Friday.

PET is a strong, stiff synthetic fibre and resin, and is a member of the polyester family of polymers. It is used in fibres for clothing, containers for liquids and foods, and thermoforming for manufacturing, and in combination with glass fibre for engineering resins.

According to Miti, Recron claimed that dumped imports from China and Indonesia have increased in terms of absolute quantity and have caused material injuries to the company.

The investigation was initiated under Section 20 of the Countervailing and Anti-Dumping Duties Act 1993 and Regulation 2 of the Countervailing and Anti-Dumping Duties Regulations 1994.

In compliance with the act and the regulations, Miti said a preliminary determination on the synthetic fibre duty investigation will be made within 120 days from the date of initiation.

"If the preliminary determination is affirmative, the government will impose a provisional anti-dumping duty at the rate that is necessary to prevent further injury to the domestic industry," the ministry said.

In a separate statement, Miti said it has also initiated an administrative review concerning imports of stranded steel wires for prestressing concrete originating or exported from China.

The review was initiated following an application made by domestic producer Southern PC Steel Sdn Bhd, a subsidiary of listed company Southern Steel Bhd (KL:SSTEEL), on the grounds that the dumping margin of the subject merchandise originating or exported from China has changed substantially.

Miti said the original anti-dumping investigation was initiated on March 31, 2021, and the final affirmative anti-dumping duties imposed on the subject merchandise originating or exported from China range between 2.09% to 21.72%, effective from Dec 25, 2021 to Dec 24, 2026.

The ministry added that the final determination will be made within 180 days from the date of initiation.