Korean synthetic fiber producers are at a deadlock due to stagnant exports, anti-dumping action and frequent and fierce strikes. There have been eleven cases in which anti-dumping duties have been imposed by countries such as India, Mexico, Turkey, Brazil and the U.S. since 1999, out of which eight occurred from 2000.
India, the EU, U.S., Turkey and Mexico have imposed anti-dumping duties on Korean polyester staple fiber, and Mexico and Turkey on its polyester filament yarn. Turkey has also imposed anti-dumping duties on DTY. India imposed duties on acrylic fiber, and Brazil on nylon filament yarn, according to KOFOTI.
Meanwhile, labor disputes have weakened the financial position of synthetic fiber producers. Long strikes are forcing leading firms to restructure, such as Hyosung Corp., Kohap Corp. and Tae Kwang Industrial com., Ltd. Kohap planned to relocate its polyester fiber plant to Qingdao, China at the beginning of this year, but this project was postponed due to strikes. Hankook Synthetics Inc. negotiated a business tie-up with Unifi of the U.S. in August last year, but the negotiations appear to be at a standstill.
Date:8/9/2001
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