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Saudi Sipchem says no China methanol duty imposed

Published 07/06/2009, 06:04 AM
Updated 07/06/2009, 06:18 AM

RIYADH, July 6 (Reuters) - Saudi International Petrochemical Co (Sipchem) on Monday corrected a statement it made in late June that said China had imposed an import duty on methanol imports.

Last month China said it had begun an anti-dumping investigation into methanol imported from Saudi Arabia and three other countries to assess whether the material had been sold below production prices.

Sipchem said in a statement on June 27 that China had decided to impose an unspecified protectionist duty on methanol and butanediol imports but this would have no big impact on its business.

In a bourse filing on Monday, the Saudi company clarified that these duties were imposed only on butanediol and not on methanol imports, adding that Chinese authorities would take a decision only after probing complaints of dumping by some companies.

According to its 2008 annual report, Sipchem made about 1.14 billion riyals ($304 million) from methanol sales in 2008, of which 49 percent was generated in Asia.

China said its investigation would determine whether the material -- used in blended gasoline -- has been dumped onto the Chinese market at prices below production costs, and ascertain the losses incurred by Chinese producers as a result.

It said investigations are normally completed within a year, but could be extended another six months in "special circumstances". The other three countries affected are Malaysia, Indonesia and New Zealand. (Reporting by Ulf Laessing; Editing by Thomas Atkins and Anthony Barker)

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