HONG KONG, Oct. 11, 2016 /PRNewswire/ -- Tiangong International Company Limited ("Tiangong International" or the "Group"; Stock Code: 826.HK), China's largest high-speed steel (HSS) and a leading HSS cutting tools and die steel manufacturer, is pleased to note the decision by the European Commission to eliminate the "Anti-Dumping, Anti-Subsidies" duties applicable to Tiangong International -- the first successful case in the Chinese special steel industry. This move has set a positive precedent for the industry.
At the beginning of the year, the European Commission called for an anti-dumping probe into steel products such as hot-rolled boards, non-alloy aluminium or other non-alloy steel thick boards and seamless steel pipes. Fourteen enterprises in Jiangsu, including Tiangong International, were investigated under this probe where the enterprises concerned were liable for a maximum 22.6% import tax.
As a key production enterprise for the Chinese special steel industry, one of the top 500 private enterprises and one of the four largest special steel enterprises, Tiangong International has been vigorously defending itself since receiving notice of anti-dumping from the European Commission. The Group also received the full support of its international business partners and overseas subsidiaries. After gathering sufficient information and evidence, the Group was determined to defend itself in the case.
After eight months of proceedings, the European Commission decided that Tiangong International would not be liable for additional taxes for its special steel product exports into the European Union. Apart from being the first successful case in the Chinese special steel industry, this is also the first "anti-dumping" case a Chinese company has fought against the European Union since the tax duty case under the World Trade Organization. Other special steel enterprises may also be exempted from anti-dumping duties by using Tiangong's case as a precedent. Meanwhile, Tiangong International is also vigorously defending itself in the "anti-dumping" case in the United States, where the Group believes that its success in the European Union will have a strong bearing and key strategic implications.
Mr. Zhu Xiaokun, Chairman of Tiangong International, said, "After a long proceeding which drew our undivided attention, we have been vindicated in the 'Anti-Dumping, Anti-Subsidies' case, marking a groundbreaking success in the Chinese special steel industry. This is not just a remarkable win for Tiangong International, but also for the Chinese special steel industry which has no other recourse in such a scenario. For the sake of our national business and the Chinese special steel industry, we were determined to fight and defend our position. The rationale for the European Commission's decision resonates strongly with both Tiangong International and the Chinese special steel industry. We are delighted with the decision and are heartened by such an outcome. In future, we will continue to place top priority on maximizing value for shareholders and on following the highest standards of corporate governance."
Mr. Wang Huai Shi, Secretary-General of China Special Steel Enterprises Association, said, "The success of this anti-dumping case underscores the economic position of the Chinese market. The case has set a positive precedent for the special steel industry, and will support the fast growth and development of the special steel industry."
About Tiangong International Company Limited
Tiangong International, (the "Group"; Stock Code: 826.HK), headquartered in Danyang City, Jiangsu Province, is China's largest manufacturer of high-speed steel (HSS) and the leading manufacturer of HSS cutting tools and die steel. It is also engaged in the production of titanium alloy. HSS and die steel belong to the special steel category. Due to its diversity and specialized nature, it is widely used in various industries domestically and overseas, including machinery and equipment manufacturing, vehicle production, railway and the petrochemicals industry. Meanwhile, high-speed steel cutting tools and titanium alloy have wide applications in different sectors, including aerospace, automotive, machinery, electronics, petrochemical processing and other areas such as construction, decoration, agriculture and domestic use.
For enquiries:
Ms. Rebecca Yu/ Charlotte Li
Hill+Knowlton Strategies Asia
Tel: (852) 2894-6318 / 2894-6229
Email: TiangongH+K@hkstrategies.com
