BEIJING, March 17, 2012 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holding) Co., Ltd. (NASDAQ:FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET films in China, today announced that it was advised of the final results of the second antidumping administrative review of BOPET films originated from China ("the final results") conducted by the U.S. Department of Commerce ("the Department").
On December 28, 2010, the Department embarked on its second routine annual review of Chinese BOPET film exporters covering a period from November 1, 2009 to October 31, 2010 ("the AR Period"). Six Chinese exporters, including Fuwei Films, were examined.
According to the final results, Fuwei received an antidumping duty ("ADD") rate of 8.48%, which is slightly higher than the lowest antidumping duty rate of 8.42% of all the Chinese exporters being reviewed. In accordance with Antidumping Duty statute and the U.S. Department of Commerce regulations, the ADD rate of final results will retroactively apply to those U.S. companies which imported BOPET films originated from China and Fuwei Films USA, LLC will pay the ADD. Fuwei Films has a 30 day period in which it can file a Court challenge in the U.S. Court of International Trade seeking to further reduce these margins. During the Administrative Review Fuwei submitted information to the Department which demonstrated that a full and complete review of Fuwei would have resulted in a finding of no dumping by Fuwei during the period. Fuwei's U.S. trade counsel has advised Fuwei that the Department's refusal to consider this information was not in accordance with the law and the U.S. Department of Commerce's duties under the law. During the AR period, the export of BOPET films from Fuwei Films to the United States reached 61.9 metric tons in volume and US$156,000 in value.
"The antidumping investigation of BOPET films originated from China conducted by the Department since 2007 has had a material adverse effect on our export to the United States," said Mr. Xiaoan He, Chairman and CEO of the Company.
In addition, on December 30, 2011, the Department commenced its third routine annual review of BOPET films originated from China. In order to gain an opportunity to continue exporting to the United States, Fuwei Films, although not a mandatory respondent, will actively respond to the review to the extent permitted by law and will continue to seek the low rate which should properly apply to its exports to the United States.
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 Films' BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.
Safe Harbor
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 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 including complaints and claims from clients; 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.
For more information, please contact:
In China:
Miss Lysander Lee
Investor Relations Officer
Phone: +86-10-6852-2612
Email: fuweiIR@fuweifilms.com
In the U.S.:
Ms. Leslie Wolf-Creutzfeldt
Investor Relations
Grayling
Phone: +1-646-284-9472
Email: leslie.wolf-creutzfeldt@grayling.com
