Lithuanians hit with anti-dumping penalty

The European Commission's decision to impose a temporary anti-dumping duty on exports by Dirbtinis Pluostas, Lithuania's sole acetate yarn manufacturer, comes as yet another blow to the ailing company.

The European Commission has levied a 20.1 percent anti-dumping duty on Dirbtinis Pluostas' exports to the European Union for half a year starting Sept. 20. This duty would apply to all exporters of acetate yarn from Lithuania, if there were any such companies.

Laima Skruodiene, head of the Economy Ministry's foreign trade department, said the EC, the European Union's executive arm, should decide on further extension of the anti-dumping duty a month before the present measure expires.

The EC has also imposed a 16.3 percent anti-dumping duty on Celanese Acetate and set a zero anti-dumping duty rate for Eastman Chemical Company, both based in the United States.

It launched an anti-dumping probe against acetate yarn exports to EU. markets from the United States and Lithuania last January at the request of the International Rayon and Synthetic Fibers Committee.

Skruodiene said the Italian acetate yarn manufacturer Novaceta, which earlier had plans to acquire Dirbtinis Pluostas, led the anti-dumping initiative against the Lithuanian producer.

Italy is the main export destination for Dirbtinis Pluostas' products, with nearly 3,340 tons of yarn exported to that country during the first seven months of this year. Other export markets included the Czech Republic, the Netherlands and Rumania.

The bankruptcy proceedings against Dirbtinis Pluostas, based in Lithuania's second-biggest city, Kaunas, were started in June 2001.

The company's debts to creditors amount to nearly 290 million litas (84 million euros).

Dirbtinis Pluostas exported around 95 percent of its products and had a one-third share of the European acetate yarn supply market several years ago.

Dirbtinis Pluostas posted a loss of 31.8 million litas for the full year 2001. According to press reports, the company made a loss of 1.4 million litas in the first half of 2002.