Last year was tough for China’s fibreglass industry: sales to European markets fell by 60 per cent after the European Commission slapped anti-dumping duties on Chinese fibreglass imports. So the news on Tuesday that Yunnan Yuntianhua (YTH) will acquire a Brazilian counterpart, Capivari Fibras de Vidro (OCV), for US$59.5m is probably welcome news for the industry.
The deal could signal a trend of Chinese companies seeking overseas deals outside of the EU, sources told beyondbrics.
Steve Liu, analyst at Donghai Securities, said that in 2009 about 20 per cent of China’s glass fibre output was sold to Europe. But on December 17, 2009, the European Union initiated an anti-dumping investigation into Chinese fibreglass, which eventually led to a provisional anti-dumping duty on glass fibre products exported from China to the EU. Sources tell us the duty could last up to five years.