EUROPE/BRUSSELS 9/12/2024 - A coalition of major seamless steel cylinder manufacturers, who are members of the European Cylinders Manufacturers Association (ECMA), have filed a complaint against dumping and obtained an anti-dumping investigation from the European Commission into extremely cheap imports of high pressure steel cylinders from China. These cylinders are of Chinese origin and have been massively marketed in the European Union in recent years at prices often below the cost of production of European cylinders manufacturers.
A European coalition made up of Cylinders Holding a.s., Eurocylinder Systems AG, Faber Industrie S.p.A, Dalmine S.p.A and Worthington Cylinders GmbH points to manifestly unfair competition. "We welcome fair competition, but it is patently unfair to compete with a product whose selling price does not even cover the material and energy costs of a European cylinder manufacturer, let alone the production costs. Producers in the PRC are not bound by the social, economic and environmental regulations that govern producers in Europe. In addition, Chinese cylinder manufacturers benefit from significant cost distortions through subsidy mechanisms, which give them an unfair advantage when exporting to the EU. Together with our legal team, we believe we have a very strong case that we hope will lead to the introduction of tariffs to restore a level playing field across Europe," said the coalition of five producers.
At the same time, it highlighted the fact that over many years ECMA members and other European producers have invested significantly in substantially improving the safety and efficiency of high pressure seamless steel cylinders, while reducing costs for consumers.
The initiators of the investigation into cheap imports hope that their initiative will ensure fair competition in the seamless steel cylinder sector so that a strong European industry can continue to serve its customers, preserve the self-sufficiency of the EU industry and avoid future adverse effects of dependence on non-EU suppliers.
At the same time, the aim is to ensure that European manufacturers can continue to produce safe and efficient high-pressure steel cylinders, where safety is the primary quality indicator. They meet the requirements of customers not only in Europe but all over the world. European cylinder manufacturers emphasise that it is they who continue to innovate in cylinder safety and product design.
At the same time, the Coalition calls on all parties involved in the supply chain, from raw material suppliers to cylinders buyers, to support this complaint of Chinese dumping, bearing in mind that the loss of European cylinders manufacturers will have long-term consequences throughout the chain.
In particular, the loss of local producers, the lack of innovation in cylinders design and efficiency, the loss of control over production, the possible disruption of supply due to transport difficulties, the possible increase in costs, the strategic loss of European suppliers leading to a loss of certainty and the negative impact on the EU steel industry as a major supplier of raw material.
Moreover, dependence on products from the PRC may jeopardise the EU's transition to climate neutrality as seamless steel cylinders are an essential part of the new and emerging hydrogen economy. It is likely that the European Commission will approach a number of customers of European cylinder manufacturers and those approached should be aware of all the circumstances and provide the Commission with all the information requested.
