UPDATE 1-EU starts probe into imports of Chinese chemical

(Adds details)

BRUSSELS, July 23 (BestGrowthStock) – The European Union has
launched an anti-dumping investigation into imports of a
flame-retardant chemical from China, the executive European
Commission said on Friday.

The investigation follows a complaint lodged by Europe’s
leading chemicals lobby in June and will look at imports of tris
(2-chloro-1-methylethyl) phosphate.

“The complainant has provided evidence that imports of the
product under investigation from the country concerned have
increased overall in absolute terms and in terms of market
share,” the Commission said in its official journal, adding
there was evidence that the product’s pricing hurt EU industry.

The announcement follows recent EU decisions to investigate
Chinese trade practices in the paper, ceramics, chemicals and
bicycle industries and is likely to aggravate EU-Chinese
relations.

Officials from the 27-country EU have until October 2011 to
impose protective duties on the chemical, and these could remain
for up to five years.

Duties could benefit European producers of the compound. A
person familiar with the case said these included Germany’s BASF
(BASF.DE: ) and Lanxess (LXSG.DE: ).

The probe will test the production costs and export pricing
practices of selected Chinese producers. Dozens of firms produce
the flame retardant in China, including Morris Chemical,
Wellchem and Polymate Additives Co, the person said.

Stock Market Research

(Reporting by Juliane von Reppert-Bismarck, editing by Dale
Hudson)

UPDATE 1-EU starts probe into imports of Chinese chemical