EU Announces Import Tariffs On Chinese Fiberglass

The European Commission Thursday imposed steep tariffs on imports of Chinese-made fiberglass, a key material used in clean energy technologies.

Glass Fibre Europe, which represents subsidiaries of PPG Industries Inc. (PPG), Owens Corning (OC) and others, sought the tariffs this year, arguing that Chinese fiberglass producers are selling their product in Europe at artificially--and unfairly--low prices. China is the main target of such complaints by producers in the European Union and the U.S. in a wide range of industries.

The tariffs announced Thursday will be 43.6% and last for several months while the commission, the EU's executive arm, decides whether duties lasting five years are warranted.

The commission almost always proposes long-term duties after deciding that temporary duties are needed. A majority of ministers from the 27 EU governments must agree for long-term duties to take effect.

The type of fiberglass at the center of the dispute is crucial for strengthening composite plastics, which are increasingly used to build everything from cars to the long blades of a wind turbine.

The tariffs won't significantly raise the price of these plastics as fiberglass is "a minor cost item" in finished products, said Axel Jorns, secretary general of the European fiberglass makers group.

-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@dowjones.com

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