MITI INITIATES SAFEGUARD INVESTIGATION ON HOT ROLLED COIL IMPORTS

KUALA LUMPUR, May 4 (Bernama) -- The government has initiated a preliminary
safeguard investigation on hot rolled coil (HRC) imports into Malaysia which
rose considerably, the last three years, causing serious injury to the domestic
industry.

Preliminary determination will be made within 90 days from the commencement
of the investigation on May 1.

"Further investigation will be carried out if preliminary affirmative
determination is made by the government.

"And, during this time, the government may impose a provisional safeguard
duty on the imports of HRC, for the purpose of providing temporary protection
and reduce the effects of serious injury to the domestic industry, the
International Trade and Industry Ministry said in a statement Wednesday.

HRC is a base material used in the automotive, construction, electric and
electronics, fabrication, engineering and manufacturing industry.

The government undertook the investigation after receiving a safeguard
petition from Megasteel Sdn Bhd, which represented the domestic HRC industry,
which alleged that HRC importation increased between 2007 and 2010, causing
serious injury to the domestic industry.

The petitioner provided evidence that imports of HRC from foreign
countries increased both, in absolute and relative terms, causing
a negative impact.

As a result, the petitioner had suffered serious injury in declining market
share, reduced sales, reduced production and capacity utilisation, insufficient
cash flow and net losses.

Based on the petition, the government established that there was sufficient
evidence of increased HRC imports into Malaysia, serious injury and causal link.