The International Trade Commission, a US federal agency which advises the President and Congress, has voted three to one in a ruling that finds import from Japan and China are damaging to US industry.
The plates it says are “sold at less than fair value and subsidised by the government of China”. Imports from China will be subject to extra duty and plates from China and Japan will be subject to antidumping orders. This adds 91.83% to the price of plates from Japan and 151.51% to those from China. Its full report will be published at the start of December.
The decision has sparked an immediate reaction from Fujifilm which supplies plates to North American customers and has plants in both China and Japan. “Fujifilm is committed to being a responsible supplier of aluminium lithographic printing plates,” says Hidetoshi Kino, North American general manager. “Our customers choose our products for their innovative technology, superior features, and exceptional service.”
The tariffs have been in force since earlier this year and printers appear to be able to absorb the additional cost on what is a minor part of their overall costs. Invoice statements to customers clearly point out the tariff element on the cost.
Fujifilm has already hit back at Kodak claiming that the Sonora plate infringes Fujifilm patents and says that on publication of the reasoning in November, it will “evaluate the decision and consider our options, including the possibility of an appeal”.
The inquiry began after complaints from Kodak. It has been unable to purchase litho grade aluminium reels for the price that Chinese-made plates were appearing at in North America. This pointed to huge subsidies for aluminium endorsed by the Chinese government says Kodak. “All we want is a level playing field,” says CEO and executive chairman Jim Continenza.
The battleground may now shift to Europe with a complain to the European Commission likely once the US position is clear. Any inquiry is likely to agree with US investigators.
Currently there is no financial penalty on plates exported to the US from Europe, as Eco3 with a plant in Wiesbaden as well as China, is able to do. However, if that production is replaced by Chinese made product at a lower price than Kodak with a vast plant at Osterode can buy aluminium, the EC will be provoked into action.
Litho grade aluminium, the purest quality of the metal, is supplied by two companies in Europe: Bridgnorth Aluminium in Shropshire and Speira near Dusseldorf. These two could be hit by escalations in this trade conflict. On the other hand Fujifilm might be prompted to recommence production of plates at Tilburg, if the additional cost of imports from Japan becomes too great though tariffs and duties.
Kodak has pointed out that there is a deeper threat to the US printing industry if patterns from other industries where China has become dominant after destroying an indigenous industry through price hold true.
