Will gain from China's anti-dumping duty on pyridine: Jubilant.

NEW DELHI: Jubilant Life Sciences today said it will accrue a positive impact on its profitability this year after participation in an anti-dumping investigation by Chinese commerce ministry against pyridine originating from India and Japan.

The company had agreed to take part in the investigations by Ministry of Commerce (MOFCOM) China initiated on September 21, 2012 against imports of pyridine in China from India and Japan based on a petition filed by the Chinese domestic pyridine industry.

Pyridine is a chemical which is used in preparation of various agrochemicals and pharmaceuticals besides being an important solvent and reagent.

"Based on a preliminary determination, MOFCOM announced the provisional duties on May 28, 2013 of 24.6 per cent against Jubilant Life Sciences, 57.4 per cent against all other Indian producers and 47.9 per cent against Japanese producers," Jubilant Life Sciences said in a statement.

Commenting on the implications of the Chinese government on its business, the company said it exports less than a quarter of its production of pyridine and beta to China.

Besides, a substantial part of Jubilant's customer base in the country uses it for exports. Anti-dumping duty is not applicable on exports made by Chinese manufacturers using imported pyridine from Jubilant, it added.

"Since part of the pyridine export by Jubilant is used for export purpose by Chinese manufacturers and the prices of Pyridine have gone up about 25 per cent in China market due to strong demand, there will be an overall net positive impact on company's profitability in the current year," the company said.

It, however, did not quantify how much would it gain nor the value of pyridine exports to China.

Source : economictimes.indiatimes.com