Solar panel imports from China not harming Australian industry-regulator

09/04/2015 12:00 - 518 Views

(Reuters) - An investigation by Australia's Anti-Dumping Commission into solar panel imports from China found that the domestic industry wasn't significantly hurt by the purchases, making it likely the probe would be wound up without any punitive tariffs imposed.

The finding is a blow for Adelaide-based Tindo Solar, Australia's only solar panel manufacturer, which had sparked the probe after complaining about being forced to cut prices to compete with Chinese imports.

Following the year-long investigation, the commission found that the Australian industry suffered a "negligible" blow to sales volume, prices, profit and profitability, the regulator said in a report on Thursday.

Companies have up to 20 days to respond to the report before the commission can make a final decision on terminating its investigation or recommending whether or not Australia should impose an anti-dumping duty and the quantum.

The United States, Europe and Canada have in recent years imposed tariffs on Chinese solar panel imports, winning the support of manufacturers but angering China, major domestic retailers and installers which rely on cheap goods in large quantities to stay profitable.

Selling goods overseas at a loss to take business from local suppliers, or "dumping", is legal, according to the World Trade Organisation but authorities can charge tariffs if an industry can prove it has been damaged by the practice.

The commission said Tindo's performance was affected by its own strategy of timing its foray in a downturn and focusing on the premium end of the market coupled with the fact that Chinese solar panels were available at significantly below Tindo's costs, even without dumping.

"The Commission is not satisfied that, in the absence of dumping, Tindo would be able to reduce its selling prices ... to the extent required to ensure its prices are competitive," the report said.

Tindo Managing Director Adrian Ferraretto told Reuters that he was still evaluating the report and considering his next step.

"The size of the market when we entered is a lot bigger than we had estimated in our business plans. I think, people want to buy Australian-made panels. Operating in a fair market, we'd definitely have a much bigger market share than what we have now," he said by phone on Thursday.

Source: Reuters