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October 19, 2007

Feds impose duties on Chinese paper

The federal government yesterday set hefty duties on glossy paper imports from three Asian countries, a decision that bodes well for Maine's paper manufacturers.

In a decision in a case filed last year by Dayton, Ohio-based New Page Corp., which manufactures glossy paper for magazines and catalogues at its paper mill in Rumford, the U.S. Commerce Department set duties of up to 44.25% on glossy paper from China, 22.48% from Indonesia and up to 1.46% from South Korea, according to the wire service Reuters. The department also set anti-dumping duties of up to 99.65% on imports from China, 8.63% from Indonesia and up to 31.55% from South Korea, the wire said.

"This is good news," John Williams, president of the Maine Pulp & Paper Association, told Mainebiz this morning. "We do think Maine can produce paper that is of higher quality and [at prices competitive] with anyone in world, but if the playing field isn't level ˆ… that does put us at an unfair disadvantage." Paper mills in Rumford, Skowhegan, Bucksport and Jay have the capacity to produce over two million tons of glossy paper a year and employ almost 4,000 workers, Williams said.

For the duties to remain in place, the U.S. International Trade Commission must determine that U.S. producers have been, or could be, materially injured by the low-priced imports, Reuters said. That vote is expected by the end of November.

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