KUALA LUMPUR (Oct 1): PA Resources Bhd (KL:PA) said its wholly owned subsidiary has secured a 0% dumping rate for its aluminium extrusion exports to the US.
The subsidiary, PA Extrusion (M) Sdn Bhd, was notified of the ruling by the US Department of Commerce's International Trade Administration, the group said in a statement on Tuesday.
Receiving a 0% dumping rate means that its aluminium extrusions are competitively priced and deemed to be sold at fair value in the US, PA Resources noted.
"This ruling enables our customers in the US to operate without the burden of additional tariffs, significantly enhancing the group's competitive position for robust growth in one of the world’s largest markets," said the group.
The ruling comes amid investigations by the US International Trade Commission (USITC), which has determined that aluminium extrusions from Malaysia, as well as other countries such as China, Colombia, and Ecuador, are being sold in the US at less than fair value.
The investigations sought to determine if the imports were causing material injury to US producers, in line with anti-dumping and countervailing duty regulations.
Other Malaysian companies that are also subjected to the USITC investigations include EL Aluminium Billet (M) Sdn Bhd, Kosan Aluminum Extrusion Sdn Bhd, and Winstar Group, which all now face a 27.51% dumping rate.
PA Resources group managing director Tan Sri Lau Kuan Kam said the tariff-free status is expected to strengthen the group's pricing position, particularly as it expands production capabilities following its recent acquisition of 18 acres of industrial land.
"The group is committed to leveraging these developments to drive sustainable growth and strengthen our presence as aluminium extruder provider in the renewable energy sectors and various industries, reinforcing our reputation for quality and commitment to fair trade practices," Lau said.
Shares in PA Resources closed half a sen or 1.56% higher at 32.5 sen on Tuesday, giving the group a market capitalisation of RM488.96 million.