CD-R prices to rise in Europe after dumping levy?
Penalties up to 40 per cent
CD-R prices in Europe are set to rise following the European Union's imposition of anti-dumping penalties on Taiwanese manufacturers. Price rises, however, are unlikely to be as high as the penalties themselves, which range from 18.8-39.5 per cent, owing to a combination of localisation of manufacturing and some intriguing political shananigans, according to a Commercial Times report detailed here by AisaBiztech.
The EU has been conducting an investigation of Taiwanese CD-R pricing in Europe since March, and companies who co-operated have been hit at the lower level. Brussels however will clearly not be trifled with, as otherwise co-operative :Princo Corp was slammed with 29.9 per cent for handing in its questionnaire late. CMC Magnetics won the 39.5 per cent levy by virtue of not co-operating at all, and this is where it gets interesting.
According to the report it will switch production to plants in Mexico and Hong Kong prior to bringing its new UK plant on stream, so it's prepared to laugh off the levy. Furthermore, CMC is reported as agreeing that price cuts have eaten into profitability, and are beginning to squeeze the smaller companies. Who are of course less capable of localising their production. CMC also cut a separate royalties deal with Philips, effectively derailing the efforts of on alliance of manufacturers which had been trying to negotiate lower rates with the Netherlands giant, and this is obviously going to hit the other manufacturers too.
It all sounds diabolically cunning, doesn't it? ®