It is reported that two local manufacturers are getting federal government action over what they worry is unfair dumping of cheap Asian goods into the Canadian marketplace.

Mr Frank Brazda VP & GM at Coldwater's Novanni Stainless Inc said that he's happy with a Canada Border Services Agency decision to investigate the alleged injurious dumping and subsidizing of stainless steel sinks originating in or exported from China.

Mr Brazda said that "It's a good thing. There seems to be a lot of product coming in from Asia. At the end of the day, we manufacture a very high quality, reasonably priced product."

The CBSA investigation follows an earlier complaint filed by Novanni and Midland's Franke Kindred Canada Limited. The complainants allege the dumping and subsidizing of these goods harm Canadian production through loss of market share, loss of sales, price erosion, reduction in employment and declining revenues, margins and profits.

Mr Case de Jong president of Franke Kindred's North American division said that the impact has been substantial. He added that "Over the past five years, Franke and Novanni have lost considerable market share to Chinese imports, and the imports are direct copies of our designs. They are 25% to 30% cheaper than they were five years ago."

Mr De Jong, who has also discussed the issue with Simcoe North MPP Mr Garfield Dunlop and Midland Mayor Mr Gord McKay, said that the products are selling for far less than they would cost to manufacture and export, even when one factors in cheaper labor costs. To ensure the CBSA knows what to look for when it visits the Chinese sink plants in the coming month, its agents will visit Franke Kindred's Midland plant over the next week or so to learn the processes involved in making a sink.

Mr Jong said that "CBSA goes into factories to see if the same process is being used. I am cautiously optimistic the situation will end on a positive note. For us, it's extremely significant."

Simcoe North MP Mr Bruce Stanton said Mr de Jong brought the issue to his attention earlier this year. He said that "It's a very unique situation. All of the stainless steel sinks (manufactured) in Canada are from our area."

The Canadian International Trade Tribunal will now begin a preliminary inquiry to determine whether the imports are harming Canadian producers. It will issue a decision late next month. While the tribunal examines the question of possible injury, the CBSA will investigate whether the imports are being dumped and or subsidized. It plans to release its decision by January 25th 2012.

(Sourced from www.simcoe.com)