Proposal for a Council Regulation imposing a definitive anti-dumping duty on imports of ethanolamines originating in the United States of America
Date: 2009-12-21
Institutions: European Commission
Subjects: United States, anti-dumping duty, anti-dumping legislation, import, organic chemical, originating product

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EUROPEAN COMMISSION  

Brussels, 21.12.2009 
COM(2009)697 final 

2009/0185 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of ethanolamines originating in the 
United States of America  

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EXPLANATORY MEMORANDUM 

1) CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This  proposal  concerns  the  application  of  Council  Regulation  (EC)  No  384/96  of  22 
December 1995 on protection against dumped imports from countries not members of 
the  European  Community  ('the  basic  Regulation')  in  the  expiry  review  proceeding 
concerning  imports  of  ethanolamines  originating  in  the  United  States  of  America 
('USA').  

•  General context 

This proposal is made in the context of the implementation of the basic Regulation and 
is the result of an investigation which was carried out in line with the substantive and 
procedural requirements laid out in the basic Regulation. 

•  Existing provisions in the area of the proposal 

Council Regulation (EC) No 1583/2006 of 23 October 2009 (OJ L 294, 25.10.2006). 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2) CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceeding  have  already  had  the  possibility  to 
defend their interests during the investigation, in line with the provisions of the basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The basic Regulation does not foresee a general impact assessment but the requirement 
that the measures should not be contrary to the “Community interest” means that the 
assessment  of  the  wider  impact  of  the  measures  forms  an  integral  part  of  the 
investigation.  

3) LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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On  25  October  2008,  the  Commission  announced  by  a  notice  ('notice  of  initiation'), 
published  in  the  Official  Journal  Of  the  European  Union,  the  initiation  of  an  expiry 
review of the anti-dumping measures in force on imports of ethanolamines originating 
in the USA. 

The  expiry  review  was  initiated  following  a  request  lodged  on  25  July  2008  by  four 
Community producers representing a major proportion, in this case more than 50%, of 
the total Community production of ethanolamines. 

The measures currently in force is a definitive anti-dumping duty imposed by Council 
Regulation (EC) No 1583/2006 on the imports into the Community of ethanolamines 
originating in the USA. 

The  enclosed  Commission  proposal  for  a  Council  Regulation  contains  the  expiry 
review conclusions regarding dumping, injury and Community interest.  

Member States were consulted during the Anti-Dumping Committee of 19 November 
2009.  

It  is  proposed  that  the  Council  adopts  the  attached  proposal  for  a  Regulation  which 
should be published in the Official Journal of the European Union by 23 January 2010 
at the latest. 

•  Legal basis 

Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection  against 
dumped imports from countries not members of the European Community. 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The form of action is described in the above-mentioned basic Regulation and leaves no 
scope for national decision. 

Indication  of  how  financial  and  administrative  burden  falling  upon  the  Community, 
national governments, regional and local authorities, economic operators and citizens is 
minimized and proportionate to the objective of the proposal is not applicable, but the 
basic Regulation limits the level of the duties that may be imposed to that necessary to 
redress the injury caused by the dumping found. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason(s). 

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The above-mentioned basic Regulation does not foresee alternative options. 

4) BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

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2009/0185 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of ethanolamines originating in the 
United States of America  

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  European  Union  and  the  Treaty  on  the  Functioning  of  the 
European Union, 

Having  regard  to  Council  Regulation  (EC)  No  384/96  of  22  December  1995  on  protection 
against  dumped  imports  from  countries  not  members  of  the  European  Community1 
(hereinafter  referred  to  as  'the  basic  Regulation'),  and  in  particular  Articles  9(4)  and  11(2) 
thereof, 

Having  regard  to  the  proposal  submitted  by  the  European  Commission,  after  consulting  the 
Advisory Committee, 

Whereas: 

A. PROCEDURE 

1. Measures in force 

(1) 

(2) 

In  February  1994,  the  Council  imposed,  by  Regulation  (EC)  No  229/942  definitive 
anti-dumping  duties  on  imports  of  ethanolamines  (product  concerned)  originating  in 
the United States of America ('USA').  

Following  a  request  of  the  Conseil  européen  des  fédérations  de  l'industrie  chimique 
(CEFIC)  an  expiry  review  pursuant  to  Article  11(2)  of  the  basic  Regulation  was 
initiated in July 2005. By Regulation (EC) No 1583/20063 the Council concluded this 
review  and  imposed  definitive  anti-dumping  measures  on  imports  of  ethanolamines 
originating in the USA. The duties were in the form of a specific fixed duty. 

2. Request for an expiry review 

(3) 

Following the publication in March 2008 of a notice of impending expiry of the anti-
dumping measures applicable to imports of ethanolamines originating in the USA4, the 

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OJ L 56, 6.3.1996, p.1.  
OJ L 28, 2.2.1994, p.40. 
OJ L294, 25.10.2006, p.2. 
OJ C 71, 18.3.2008, p.13. 

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Commission received on 25 July 2008 a request for a review pursuant to Article 11(2) 
of the basic Regulation.  

The request was lodged by BASF SE/AG, INEOS Oxide Ltd, Sasol Germany GmbH, 
and  Akzo  Nobel  Functional  Chemicals  AB  ('the  applicants')  on  behalf  of  producers 
representing a major proportion, in this case more than 50%, of the total Community 
production of ethanolamines.  

The request was based on the grounds that expiry of the measures would be likely to 
result  in  a  continuation  or  recurrence  of  dumping  and  injury  to  the  Community 
industry.  

Having  determined,  after  consultation  of  the  Advisory  Committee,  that  sufficient 
evidence  existed  for  the  initiation  of  an  expiry  review,  the  Commission  initiated  by 
notice of initiation an investigation5 pursuant to Article 11(2) of the basic Regulation. 

(4) 

(5) 

(6) 

3. Investigation 

(7) 

(8) 

(9) 

The Commission’s services officially advised the Community producers, the exporting 
producers  in  the  USA,  importers/traders,  users  in  the  Community  known  to  be 
concerned,  as  well  as  the  authorities  of  the  USA  of  the  initiation  of  the  review. 
Interested  parties  were  given  the  opportunity  to  make  their  views  known  in  writing 
and to request a hearing within the time limit set out in the notice of initiation. 

The  Commission’s  services  sent  questionnaires  to  all  parties  known  to  be  concerned 
and to those who requested a questionnaire within the time limit set out in the notice of 
initiation. 

The Commission also gave the parties directly concerned the opportunity to make their 
views  known  in  writing  and  to  request  a  hearing  within  the  time  limit  set  out  in  the 
notice of initiation.  

(10)  Replies to the questionnaire were received from two exporting producers in the USA, 
one  related  importer  in  the  Community,  one  related  importer  in  Switzerland,  four 
Community producers ('the applicant Community producers'), and one industrial user 
in  the  Community.  One  additional  exporting  producer  in  the  USA  (Huntsman 
Petrochemical  Corporation)  submitted  a  document  ('position  paper')  in  which  it 
claimed  that  the  measures  should  be  repealed  but  did  not,  however,  respond  to  the 
questionnaire.  

(11)  The Commission’s services sought and verified all the information deemed necessary 
for the purpose of the determination of the likelihood of continuation or recurrence of 
dumping and injury and for the determination of the Community interest. Verification 
visits were carried out at the premises of the following companies: 

a. Applicant Community producers 

BASF SE/AG, Ludwigshafen, Germany 

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OJ C 270, 25.10.2008, p.26. 

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INEOS Oxide Ltd., Southampton, United Kingdom 

Sasol Germany GmbH, Hamburg, Germany 

Akzo Nobel Functional Chemicals AB, Stenungsund, Sweden 

b. Exporting producers in the USA 

The Dow Chemical Company, Midland, Michigan and Seadrift, Texas, USA 

INEOS Oxide LLC, Houston, Texas and Plaquemine, Louisiana, USA 

c. Related importers in the Community 

INEOS Oxide Ltd., Zwijndrecht, Belgium 

d. Related importer in Switzerland 

Dow Europe GmbH, Horgen, Switzerland 

e. Industrial users in the Community 

Evonik Degussa GmbH, Essen, Germany 

4. Investigation period 

(12)  The  investigation  regarding  the  continuation  or  recurrence  of  dumping  and  injury 

covered the period from 1 October 2007 to 30 September 2008 (the 'RIP').  

(13)  The  examination  of  the  trends  relevant  for  the  assessment  of  a  likelihood  of  a 
continuation or recurrence of injury covered the period from 1 January 2005 up to the 
end  of  the  RIP  ('period  considered').  Furthermore,  trends  for  the  assessment  of  a 
likelihood  of  a  continuation  or  recurrence  of  injury  were  also  evaluated  under  the 
angle  of  the  impact  of  the  effects  of  the  world  economic  crisis  on  the  ethanolamine 
market post RIP.  

B. PRODUCT CONCERNED AND LIKE PRODUCT 

1. Product concerned 

(14)  The product concerned is the same as that covered by the previous investigations, i.e. 
ethanolamines  currently  falling  within  CN  codes  ex  2922  11  00,  ex  2922  12  00  and 
2922  13  10 originating in the United  States of America. Ethanolamines are  obtained 
by  making  ethylene  oxide  (EO),  itself  a  result  of  a  reaction  of  ethylene  and  oxygen, 
react  with  ammonia.  This  synthesis  leads  to  three  competing  reactions  and  to  three 
different  types  of  ethanolamines:  monoethanolamine  (MEA),  diethanolamine  (DEA) 
and  triethanolamine  (TEA),  depending  on  how  many  times  EO  is  bound.  The 
maximum number of combinations is limited by the number of hydrogen elements in 
ammonia,  namely  three.  The  proportions  of  the  three  types  in  the  total  output  are 
determined  by  the  specific  design  of  the  production  facilities,  but  can,  to  a  certain 
extent, be controlled by the ammonia/EO (the 'molar') ratio.  

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(15)  The product concerned is used as an intermediate and/or additive for surfactants used 
in  detergents  and  personal  care  products,  cosmetics,  fertilisers  and  crop  protection 
agents (glyphosate), corrosion inhibitors, lubrication oils, textile auxiliaries and fabric 
softeners  (esterquats),  photographic  chemicals,  paper  and  metal-works,  wood 
treatment, as a grinding and binding aid for cement production and as a gas scrubber 
absorption aid (sweetening the gas by removing acids). The product can also be used 
by the manufacturers themselves or by their related manufacturers in the production of 
ethyleneamines. New MEA applications include taurine and electronics, in particular 
products belonging to the LCD sector. 

2. Like product 

(16)  As  in  the  original  and  previous  review  investigations,  it  was  shown  that  the  product 
concerned  produced  in  the  USA  and  sold  to  the  Community  is  identical  in  terms  of 
physical  and  technical  characteristics  to  the  product  produced  and  sold  in  the 
Community  by  the  Community  producers  and  that  there  is  no  difference  in  use 
between those products. It has further been found that the product concerned produced 
in  the  USA  and  sold  to  the  Community  is  identical  to  that  sold  on  the  US  domestic 
market. Therefore, all these products must be considered to be like products within the 
meaning of Article 1(4) of the basic Regulation. 

C. LIKELIHOOD OF A CONTINUATION OR RECURRENCE OF DUMPING 

(17) 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  it  was  examined  whether 
dumping  was  currently  taking  place  and,  if  so,  whether  or  not  the  expiry  of  the 
measures would be likely to lead to a continuation or recurrence of dumping. 

1. Preliminary remarks 

(18)  Of the four US exporting producers named in the complaint, two cooperated, one did 
not cooperate in the investigation but only submitted a position paper while no reply or 
any  other  information  was  received  from  the  fourth  US  company  mentioned  in  the 
complaint.  

(19)  The two cooperating exporting producers represented the major proportion (i.e. more 
than  90%,  the  precise  figure  cannot  be  disclosed  for  reasons  of  confidentiality)  of 
imports  to  the  Community  during  the  RIP,  which  amounted  to  37  583  tonnes  and 
which is 8,5% lower than the imports during the previous investigation period (1 July 
2004  to  30  June  2005).  Imports  into  the  Community  of  the  product  concerned 
originating in the USA represented 14% of Community consumption during the RIP.  

2. Dumping of imports during the RIP 

Normal value 

(20)  With  regard  to  the  two  cooperating  US  exporting  producers,  normal  value  was 
established for each type of the product concerned, based on the price paid or payable 
on the domestic market in the USA by unrelated customers pursuant to Article 2(1) of 
the  basic  Regulation,  since  these  sales  were  found  to  have  been  made  in  sufficient 
quantities and in the ordinary course of trade. 

Export price 

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(21)  As in the original and in the previous review investigations, this investigation showed 
again that the two cooperating US exporting producers exported the product concerned 
to  the  Community  via  companies  which  are  related.  As  a  consequence,  and  in 
accordance  with  Article  2(9)  of  the  basic  Regulation,  export  prices  were  constructed 
on the basis of the prices at which the imported product was first resold to independent 
customers  in  the  Community.  Allowance  was  made  for  all  costs  incurred  between 
importation  and  resale,  including  selling,  general  and  administrative  costs  and  the 
profit  realised  in  the  Community  by  the  importing  companies  during  the  RIP.  With 
respect to profit margin, the actual profit of the related traders could not be used since 
the  relationship  between  the  exporting  producers  and  the  related  traders  made  these 
prices unreliable. Their profit margin were thus set at a reasonable rate, not exceeding 
the actual profit margin obtained by the related traders and in line with profit margins 
used for the similar reasons in the previous review.  

Comparison 

(22)  The  normal  value  was  compared  with  the  average  export  price  for  each  type  of  the 
product concerned, on an ex-works basis and at the same level of trade. In accordance 
with  Article  2(10)  of  the  basic  Regulation,  and  for  the  purpose  of  ensuring  a  fair 
comparison,  differences  in  factors  which  were  claimed  and  demonstrated  to  affect 
price  and  price  comparability  were  taken  into  account.  Adjustments  were  made  for 
inland and ocean freight, deferred rebates, handling and packaging costs, credit costs 
and import duties, which were all deducted from the resale prices in order to arrive at 
an ex-works basis.  

Dumping margin 

(23) 

In  accordance  with  Article  2(11)  of  the  basic  Regulation,  the  dumping  margin  was 
established  per  product  type  on  the  basis  of  a  comparison  of  the  weighted  average 
normal value with the weighted average export prices at the same level of trade. This 
comparison showed the existence of dumping during the RIP, albeit at a lower level 
than  that  established  in  the  previous  review.  The  weighted  average  dumping  margin 
expressed as a percentage of the CIF value at the Community frontier was 11,9% for 
INEOS  Oxide  LLC  and  zero  for  Dow  Chemical.  With  respect  to  the  other  US 
producers  who  did  not  cooperate  with  the  investigation  and  covered  during  the  RIP 
less than 5% (precise figure cannot be disclosed for reasons of confidentiality) of the 
US imports of the product concerned to the Community, the dumping margin had to 
be based on facts available in accordance with the provisions of Article 18 of the basic 
Regulation.  As  stated  above  the  investigation  established  the  existence  of  dumping. 
Thus, in line with the provisions of Article 18(6) of the basic Regulation, the existence 
of dumping at the level found for INEOS Oxide LLC, i.e. 11,9%, is attributed also to 
those exporters that did not cooperate with the investigation. Indeed, there is no reason 
to believe that a party that did not cooperate with the investigation was dumping less 
than  any  cooperating  party  and  to  treat  such  party  more  favourably  than  parties  that 
have cooperated. It should be noted that there was no verifiable information available 
for  the  non-cooperating  US  producers  while  the  verified  questionnaire  replies  of  the 
cooperating  US  exporting  producers  in  comparison  with  the  Eurostat  statistics  rules 
out  the  possibility  that  the  missing  quantities  were  exported  by  the  cooperating  US 
exporting producers. 

3. Development of imports should measures be repealed 

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Preliminary remarks 

(24)  Further to the analysis of the existence of dumping during the RIP, the likelihood of 

the continuation of dumping was examined.  

Level of dumping in case the measures are repealed 

(25)  The  removal  of  the  measures  would  allow  exporters  to  reduce  their  export  prices.  A 
reduction  of  export  prices  would  make  the  US  product  more  attractive  on  the 
Community market. If the export prices were reduced commensurate to the level of the 
anti-dumping duties, the dumping margins observed during the RIP would be 12% for 
INEOS Oxide LLC and for the parties not cooperating (in line with Article 18 of the 
Basic Regulation) while there would be still no dumping for Dow Chemical. The small 
difference between the dumping margin with duty included and the one without duty 
is due to the fact that, during the RIP, the general price level for ethanolamines was 
quite high which meant that the anti-dumping duty imposed in the form of a specific 
fixed amount had a minimum impact. Subsequent to the RIP, prices of ethanolamines 
have generally decreased to a significant extent as explained in more detail below.  

Further room for exports to the Community market because of unused US production capacity 
during the RIP  

(26)  The  spare  production  capacity  in  the  US  during  the  RIP  is  not  insignificant.  It  is 
estimated  that  there  is  some  60  000  tonnes  of  unused  production  capacity  in  the  US 
during  the  RIP.  This  was  calculated  on  the  basis  of  volumes  produced  from  the  two 
cooperating exporting producers, the fact that normally expected production rates are 
around 90% of nameplate capacity, the assumption that the actual production yields of 
non  cooperating  US  producers  would  have  not  run  at  actual  production  rates  lower 
than 80% of name plate capacity, as well as information from leading market journals. 
The  above  figure  may  rise  up  to  some  85  000  tonnes  if  more  ambitious  production 
rates are achieved. Compared to an estimated nameplate total capacity in the USA of 
732  000  tonnes,  total  estimated  demand  including  captive  consumption  amounted  to 
588  000  tonnes.  The  relatively  low  capacity  utilisation  rate  was  a  consequence  of  a 
number of incidents that took place during the recent years namely the selective shut-
downs  that  US  producers  did  in  order  to  keep  their  inventories  low,  the 
implementation  of  their  capacity  expansions  (Dow  Chemical's  last  expansion  by  45 
000 tonnes and one of the non-cooperating US exporting producer's last expansion of 
32  000  tonnes)  and  the  impact  of  hurricanes  Gustav  and  Ike  on  certain  production 
facilities  or  some  raw  materials  production  facilities  respectively.  As  far  as  the 
hurricanes Ike and Gustav are concerned, they still had a certain impact during the RIP 
but their impact was removed post RIP. The impact according to the 2008 estimations 
by the PCI Consulting Group (PCI) is 39 000 tonnes of lost production6. The existence 
of potential unused production capacities in the USA during 2007 and 2008, i.e. during 
a period covered by the RIP, is also confirmed by a leading yearly publication which 
reviews the ethanolamine market7. This publication estimated for 2007 an oversupply 
of  65  000  tonnes  in  the  USA  market.  The  spare  capacity  of  around  60  000  tonnes 

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Ethylene Oxide & Glycol Market Outlook by PCI Xylenes & Polyesters Ltd (hereafter PCI), October 
2008 issue. 
Chemical  Economics  Handbook  Product  Review-Ethanolamines-SRI  Consulting,  January  2009, 
642.5000 A, p. 14-15. 

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should be compared to the volume of exports from the US to the Community during 
the  RIP  (37  583  tonnes)  and  total  Community  consumption  (268  000  tonnes).  It 
follows from the above that there is potential to increase exports from the US and take 
over part of the Community market.  

Further  room  for  exports  to  the  Community  market  because  of  weak  prospects  in  other  US 
export markets 

(27) 

In connection to a number of important US export markets the investigation has shown 
that US producers will have increasingly difficulties to supply these markets because 
these markets have recently become or will soon become self-sufficient. Indeed, there 
is  a  series  of  capacity  expansions  in  third  country  markets  that  have  either  been 
concluded recently or are currently in the process of being implemented and that are 
supplied  by  the  US.  These  are:  (i)  the  recent  capacity  expansion  in  Brazil  (ranging 
from 55 000 to 65 000 tonnes8), an important export market for the US producers, (ii) 
an  aggregated  expansion  of  180.000  tonnes  in  China,  a  market  to  which  some  US 
producers  export  via  joint  ventures  established  in  other  Asian  countries  and  (iii)  the 
expansions  in  Taiwan  and  Thailand  (aggregated  together  at  90  000  tonnes)  which 
makes the Asian market an area characterised by overcapacity, with little room for any 
party  outside  the  Asian  zone  to  export  to  the  Asian  market.  Total  US  exports  to 
markets  other  than  the  Community  in  2008  amounted  to  137  600  tonnes9,  with  the 
Asian  market  receiving  61  600  tonnes10.Thus  an  important  quantity  will  have  to  be 
channelled to new markets.  

(28)  To  conclude,  as  set  out  in  recital  (26),  there  is  spare  capacity  of  some  importance 
available  which  could  be  used  to  produce  more  ethanolamines  and  to  sell  it  on  the 
Community market should measures be repealed. Moreover, important export markets 
for US producers are likely to be saturated by increases in their local productions thus 
making the Community market a highly attractive option for US exports.  

Further  room  for  exports  to  the  Community  market  because  of  the  behaviour  of  one  non-
cooperating US producer  

(29)  The  possible  business  behaviour  of  the  non-cooperating  US  party  mentioned  under 
recital (10) was also examined. It is recalled that the sole information that this party 
submitted was a position paper in which it concluded that there is no injury caused by 
imports  of  US  origin  ethanolamines  and  no  likelihood  of  recurrence  of  injurious 
dumping.  The  company  argued  that  during  the  RIP  it  only  had  minor  sales  of  the 
product concerned to two unrelated and one related parties in the EU. It also stated that 
it wishes to have a regular and fair pattern of sales to the EU but did not provide any 
concrete  data  or  verifiable  information  concerning  either  its  RIP  performance  with 
respect to the product concerned or its intended future behaviour in the ethanolamine 
business  with  respect  to  the  EU  market.  Therefore  findings  with  respect  to  this  non-
cooperating US producer had to be based, in line with the provisions of Article 18 of 
the basic Regulation, on facts available. In this respect publicly available information 
was obtained from this party's corporate website as well as relevant data published by 

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Depending on the sources. 
PCI, January 2009 issue.  
PCI, January 2009 issue. 

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the  CEH  Product  Review  on  Ethanolamines  (SRI  Consulting),  a  leading  market 
journal. Based on the above it was concluded that this non-cooperating US producer 
accounted  for  29%  of  US  production  capacity  during  the  RIP  with  the  product 
concerned  considered  as  a  business  sector  belonging  to  the  company's  best 
performance  product  divisions.  The  overall  importance  of  the  EU  market  was  also 
confirmed  by  the  fact  that  sales  to  the  Community  represent  some  33%  of  this 
company's  total  sales.  Given  the  magnitude  of  this  producer  in  the  US  market,  its 
production capacity, the overall importance of the Community in its business activities 
and the importance of the Community market in the worldwide ethanolamine market, 
it  is  reasonable  to  assume  that  this  non-cooperating  US  producer  would  further 
increase its export activities to the Community, should measures be allowed to lapse. 
There  would  be  an  incentive  to  do  so  on  the  basis  of  the  data  prevailing  during  the 
RIP,  especially  because  of  the  high  price  levels  of  the  product  concerned  in  the 
Community market.  

Trade defence measures in 3rd country export markets 

(30)  Since November 2004 China levies anti-dumping duties on MEA and DEA originating 
in Japan, USA, Iran, Malaysia, Taiwan and Mexico. Ethanolamines originating in the 
USA are subject to duties ranging from 20% to 74%. In 2008 11% of total US exports 
went  to  China11,  a  market  with  increasing  demand  for  the  product  concerned  and 
which in 2007 was producing approximately 24% of its total internal consumption of 
ethanolamines.  It  should  be  noted  that  Dow  Chemical  formed  a  joint-venture  with 
Petronas, called Optimal, and installed 75 000 tonnes capacity in Malaysia, dedicated 
since 2002 to serve the Asian ethanolamine market. But the fact remains that genuine 
US exports to China are subject to measures and thus limit for all practical purposes 
the potential to absorb in any significant way spare capacities. 

(31)  Furthermore,  it  appears  that  the  US  ethanolamine  export  potential  to  China  is  also 
undermined by the fact that the Chinese duty regime on ethanolamines imported from 
ASEAN  countries  has  been  altered  (import  duty  reduced  from  5%  to  0%)  thus 
providing  a  further  advantage  to  ethanolamine  producers  in  the  ASEAN  countries 
exporting to China12. 

Development of demand in US up to RIP 

(32)  The ethanolamine market has been characterised by strong growth in the demand for 
DEA,  triggered  by  the  use  of  DEA  in  the  production  of  glyphosate  herbicides.  The 
demand  for  TEA  is  specifically  driven  by  the  use  in  the  cement  sector  and  by  the 
producers  of  fabric  softeners.  The  main  market  for  MEA  is  the  synthesis  of  organic 
compounds  (mainly  ethyleneamines).  A  US  Regulation,  effective  as  of  1  January 
2005,  prohibiting  the  use  of  alternative  metal-based  products  for  wood  treatment, 
caused an increase in demand for MEA. However, information from leading journals 
suggests that the impact of the 2005 US legislative initiative on demand will no longer 
give  rise  to  high  percentage  increases  in  consumption  in  the  future.  Indeed  public 
for  wood 
available 
preventatives  went  from  3.000  tonnes  in  2001  to  107  000  tonnes  in  2007.  However 

that  MEA  consumption  destined 

information  confirms 

11 
12 

Calculation on the basis of PCI April 2009 issue. 
Tecnon OrbiChem publication,17th March 2009. 

EN 

12 

   EN 

 
                                                 
since  2006  annual  growth  rates  are  modest  (i.e.  3%)  and  are  not  expected  to  change 
significantly in the future. This is due to the fact that this segment of the market has 
stabilized  and  that  there  is  competition  in  the  wood  preservative  market  from  other 
products  not  using  MEA  (like  borate-based  wood  preservatives,  naturally  pest-
resistant  wood  species  and  recycled  steel).  In  summary,  there  was  up  to  the  RIP  a 
positively developing demand which is, however, expected to level off.  

Possible development of demand in the US and in other markets 

(33)  The  information  available  relating  to  possible  developments  in  demand  in  the  USA 
and the rest of the world for the period up to 2013 was also reviewed. All figures in 
the following recitals are based on information sourced from the complainants, Dow 
Chemical,  INEOS  Oxide  LLC  and  the  chemical  industry’s  leading  reference 
publications  issued  by  SRI  Consulting,  the  PCI  Consulting  Group  and  Tecnon 
OrbiChem Ltd. The data do not reflect yet the impact of the current economic crisis. 

(34)  According  to  this  information,  the  annual  average  growth  rate  of  US  demand  is 
expected  to  reach  3,1%.  Growth  rates  in  other  markets  are  higher.  The  projected 
Community  annual  average  growth  rate  will  not  reach  4%,  compared  to  4,6%  in 
China, 5% in Central and South America and 13,4% in the Middle East. This situation 
confirms  that  US producers will have to search for export markets and endeavour to 
maximize their presence and gains in areas of the world that are expected to perform 
stronger in terms of growth and where opportunities for greater market shares exist.  

(35) 

(36) 

If  the  development  in  demand  is  compared  to  the  available  production  capacity,  the 
following picture emerges, again on the basis of pre crisis data: In the USA, during the 
RIP  where  the  actual  production  was  some  65  000  tonnes  higher  than  the  effective 
consumption  of  the  product  combined  with  spare  capacity,  it  will  take  some  time 
before the additional production capacity that became recently operational is absorbed. 
Public available information suggests that excess capacity in the USA is not expected 
to disappear before 2013. Thus, there will not likely be any reduced incentive for US 
producers to export in the foreseeable future.  

In contrast, in 2007, demand on the European market slightly exceeded13 Community 
production  capacity.  However,  on  the  basis  of  pre  crisis  data,  it  is  unlikely  that  this 
situation remains unchanged. Indeed, if the projected growth rates are compared with 
the  announced  capacity  expansions,  some  excess  capacity  can  be  expected  should 
INEOS  Oxide  Ltd's  investment  plans  in  the  Community  be  implemented.  Such 
capacity  expansion  is  not  expected  to  become  operational  before  the  end  of  2010. 
Thus,  the  Community  market  would  become  very  vulnerable  to  any  pressure 
originating  from  the  need  of  US  producers  to  ensure  markets  for  their  surplus 
production. 

(37) 

In general, worldwide production capacity is likely to increase from around 1 764 000 
tonnes to 2 423 000 tonnes (nameplate capacity) by 2013. This includes new capacity 
installed  in  the  Community  (+119  000),  Russia  (+50  000),  Saudi  Arabia  (+100  000) 
and  Asia  (+394  000)14.  In  China  ethanolamine  capacity  increases  of  344.000  tonnes 

13 
14 

SRI publication, January 2009. 
Tecnon OrbiChem publication, 17th March 2009. 

EN 

13 

   EN 

 
                                                 
are planned to take place in the 2009-2011 period. Account taken of the fact that one 
US  producer  sells  the  product  concerned  to  China  via  a  joint  venture  operation  in 
Malaysia,  it  is  obvious  to  expect  that  any  increase  in  self  sufficiency  in  China  will 
seriously  narrow  the  US  producer's  export  options.  As  regards  the  rest  of  the  Asian 
markets,  available  information  confirms  that  they  too  are  becoming  self  sufficient, 
thus putting extra pressure on the US producers to find new markets.  

(38)  World demand, based on a projected growth rate of 3,5-4%, will increase to 1 836 000 
tonnes by 2013. Taking into account that some capacity surplus is always absorbed by 
stoppages for maintenance and that therefore a certain buffer is needed, the projection 
for  2013  shows  only  an  equilibrium  in  the  US  and  excess  capacity  in  elsewhere.  In 
sum,  the  various  capacity  expansions  and  projections  of  the  market  situation  leading 
up  to  2013  point  to  the  likelihood  of  US  exporting  producers  dumping  on  the 
Community  market because the match  of  supply  and  demand  on  the US market  will 
probably not take effect before 2013.  

Shift from MEG production to production of ethalonamines 

(39) 

It  should  be  noted  that  ethanolamines  form  part  of  the  business  sector  of  ethylene 
oxide derivatives. Monoethylene glycol (MEG) also belongs to this sector. There are 
indications that most of the ethylene oxide derivatives producers in Asia are trying to 
concentrate  on  ethylene  oxide  derivatives  business  other  than  MEG  due  to  very 
depressed glycol markets, thus bringing more ethanolamines onto the market. Indeed, 
due to very weak MEG prices in 2008, those Asian producers that can produce MEG 
and  ethanolamines  chose  to  favour  ethanolamine  production  to  improve  their  overall 
profitability15.  This  likely  tightens  the  ethanolamine  market  in  Asia,  which  in  2008 
represented 18%16 of total US exports. Based on information from the beginning of the 
current economic crisis, there were some predictions that substantial shortages in Asia 
would still exist in the very short term17 but all these are expected to be overtaken in 
the medium term account taken of the substantial increase of ethanolamine capacity in 
Asia as explained under recital (27). 

(40)  Post  RIP  available  information  confirms  that  due  to  the  very  weak  MEG  prices 
producers  that  produce  both  MEG  and  ethanolamines  will  favour  ethanolamine 
production in order to improve their overall profitability. With respect to the evolution 
of  MEG  capacities  in  the  world,  information18  suggests  that  MEG  capacities  have 
increased by approximately 19% during the period considered. Apart from Asia, this 
was especially attributed to increases in the Middle East countries (Iran, Kuwait and 
Saudi  Arabia),  where  expansions  of  MEG  will  continue  up  to  2015.  In  Mexico  a 
40.000  tonnes  capacity  increase  for  EAO  production  took  place  during  the  period 
considered while available information suggests that a switch from MEG  production 
to ethanolamine production should be expected. This situation confirms that the world 
market is facing a serious oversupply problem in MEG production and explains why 
world MEG prices are falling.  

15 
16 
17 
18 

Tecnon OrbiChem publication, 17th December 2008. 
Calculation on the basis of PCI April 2009 issue. 
Based on consumption and expansion plans data of SRI publication, January 2009. 
PCI April 2009 issue; Tecnon OrbiChem publications of 17th December & 17th March 2009. 

EN 

14 

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(41)  Since the USA is the most important ethanolamine market in the world it is expected 
that  it  will  be  the  first  market  that  will  be  faced  with  the  consequence  of  MEG 
overcapacity,  i.e.  drop  in  MEG  prices  and  switch  of  the  relevant  raw  material 
(ethylene oxide) from the production of MEG to the production of ethanolamines. It is 
obvious  that  MEG  overcapacity  and  the  resulting  consequences  together  with  the 
already  identified  ethanolamine  surplus  in  the  US  market  will  put  pressure  on  the 
ethanolamine prices.  

Relationship between US export prices and EU prices  

(42) 

(43) 

In  general,  sales  on  the  Community  market  are  less  often  made  under  fixed  term 
contracts than on the US market but all verified contracts contained clauses allowing 
for a comparatively quick adaptation of prices (normally within few weeks) as a result 
of any price fluctuation. Consequently, the existence of a sales contract does not entail 
that  sale  prices  are  set  for  a  longer  period  and  are  as  a  result  stable.  Unit  prices  are 
very much driven by world market prices. 

Industrial  users  in  the  US  and  in  the  EU  usually  obtain  similar  conditions  on  both 
markets  as  they  are  often  multinational  companies  that  negotiate  their  sourcing  on  a 
worldwide basis and select suppliers that are capable of delivering on a similar scale. 
Sales to traders and distributors by the two cooperating exporting producers represent 
only  between  10%  and  20%  of  the  volumes  sold  on  the  US  domestic  market  and 
between 25 and 35% of sales on the Community market. According to verified data, 
the  US  domestic  prices  to  traders  were  on  average  7%  lower  than  the  Community 
prices and US sales prices to domestic industrial users were on average approximately 
30% lower than to the Community users. These data confirm that during the RIP there 
was  a  comparatively  significant  difference  between  the  two  markets  with  the 
Community market prices being higher than the US prices. Therefore, account taken 
of the saturation in the other US export markets and the level of prices in the EU, the 
termination of measures would constitute a significant incentive to increase exports to 
the  EU  should  such  price  difference  continue  in  the  near  future.  In  this  respect  it  is 
noted that, as it is explained under recital (48), relevant post RIP data suggests that due 
to the world economic crisis, US prices surpassed Community prices in the post RIP 
period.  

(44)  On  the  basis  of  the  data  relating  to  the  RIP  and  given  the  not  insignificant  price 
difference  between  US  and  EU  prices  for  industrial  users,  which  constitute  the 
majority of customers, the termination of the measures would constitute a significant 
incentive to shift US sales to the EU. In any event, this picture has changed post RIP 
and for most product types US exports would only be competitively priced if they are 
made at dumped levels (see below under recital (48).  

Relationship between the US export prices to third countries and to the Community 

(45)  The  investigation  showed  that  the  main  export  markets  for  the  USA  during  the  RIP 
were  Canada,  Mexico,  Brazil  and  the  Community.  With  respect  to  sales  prices,  US 
export prices to third countries are generally higher than on the USA domestic market 
and the US export prices to the EU are generally higher than the ones to the rest of the 
world.  Although  the  above  could  partially  be  attributed  to  the  lower  export  volumes 
(i.e. lower volumes typically result in higher prices), it also confirms the importance of 
the export markets for US producers who could always expect higher prices and thus 

EN 

15 

   EN 

 
consider 
oversupply/overcapacity or erosion of demand arise in the USA domestic market.  

these  markets  as  very  attractive 

in  case  problems 

such  as 

(46)  Overall  ethanolamine  pricing  deteriorated  towards  the  end  of  2008  from  an  all  time 
high in the third quarter and the beginning of the fourth quarter of 2008. Subsequently, 
prices  weakened  due  to  weak  demand  and  much  lower  ethylene  costs19.  That  this 
erosion  of  prices  occurred  also  in  traditional  US  export  markets  such  as  Canada, 
Mexico or Brazil is also evident20 thus pointing out that post RIP prices in traditional 
US export markets are lower than in the EU. 

(47)  To  conclude,  for  both  cooperating  exporting  producers,  the  US  market  in  principle 
remains the most important sales market. The Community and Canada (the latter with 
no  ethanolamine  production)  absorb  most  US  exports  of  the  product  concerned, 
followed by Brazil and Mexico. Approximately 20% of US production was exported 
during the RIP with price levels that were generally higher than those charged in the 
domestic USA market. Thus, during the RIP sales to the Community and to the rest of 
the  world  played  an  important  role  in  the  overall  use  and  profitability  of  production 
capacities  installed.  While  prices  have  changed  significantly  subsequent  to  the  RIP 
(see  below)  there  is  no  doubt  as  to  the  continued  importance  of  export  markets  for 
profitability  and  capacity  utilization.  There  is  nothing  to  suggest  that  all  the  above 
does not apply to the non-cooperating US producers. 

Effect of the current economic crisis 

(48)  One element that is expected to play a crucial role in the development of worldwide 
capacity  and  demand  in  the  near  future  is  the  impact  of  the  recent  world  economic 
crisis. DOW Chemical has claimed that the crisis will not have a significant impact on 
the  ethanolamine  business,  that  the  current  crisis  is  bottoming  out  and  prices  are 
expected to pick up again during the second half of 2009. The Community industry on 
the other hand claimed that demand has fallen by 30%, their sales prices have fallen 
sharply  and  this  decrease  was  higher  than  the  decrease  in  price  of  the  relevant  raw 
material  used  for  the  production  of  ethanolamines,  namely  ethylene  oxide  and 
ammonia.  

DOW  Chemical's  claims  were  not  found  to  be  convincing.  Historically,  demand  for 
certain  end-use  sectors  of  the  product  concerned,  like  personal  care  products,  was 
negatively affected by economic downturns. As it was already stated above the impact 
on demand of the wood treatment US legislation is expected to phase out soon while 
the well-known weakness of the construction and car sector both in Europe and in the 
USA does not seem to help either the cement sector or the automotive fluids demand 
for  the  product  concerned  at  least  in  the  foreseeable  future.  In  addition,  textile 
applications in the US have also observed a downwards trend over the time and then a 
levelling off in 2007. All in all, Dow Chemical's claims regarding the economic crisis 
and  the  future  development  in  prices  were  not  confirmed  by  any  available  public 
information  submitted  during  the  present  investigation.  The  available  information 
from leading specialized journals confirmed the Community industry's representation 
that demand was significantly down, in some sectors even by 40%.  

19 
20 

PCI April 2009 issue. 
Tecnon OrbiChem 14th August 2009 & Tecnon OrbiChem 17th March 2009 publications. 

EN 

16 

   EN 

 
 
                                                 
Available post RIP data suggest that dumping has increased compared to the situation 
prevailing during the RIP. As stated above, during the RIP, there was a comparatively 
significant  difference  between  the  EU  and  US  markets  with  EU  prices  often  higher 
than US prices. Thus, dumping was found for two US exporters but not for the third 
one. Towards the end of the IP and in October 2008 there was clearly an overheating 
of  the  market.  In  particular,  US  prices  increased  significantly  and  overtook  the  EU 
prices in two out of the three product types (MEA and DEA which constituted 41% of 
the US exports) while the difference with TEA was significantly reduced. Even though 
prices have decreased significantly since October 2008, the most recent available data 
suggest that prices in the US are still higher than those in Europe, especially the prices 
of  MEA  and  DEA.  In  other  words,  any  exports  from  the  US  to  Europe  will  have  to 
enter at dumped prices if they are to compete with European products on the basis of 
price.  

Conclusion on the likelihood of a continuation or recurrence of dumping  

(49) 

It  is  recalled  that  dumping  during  the  RIP  was  found  to  exist  for  one  of  the  two 
cooperating exporting producers, however at a lower level than in the previous review 
investigation.  There  was  also  dumping  with  regard  to  the  exporting  producers  that 
were, however, not cooperating. 

(50)  Compared  to  the  previous  review  investigation,  the  market  share  of  US  imports 
decreased from 16,7% to 14%. There is still significant spare capacity in the USA, at 
around  approximately  60  000  tonnes,  although  at  a  reduced  level  compared  to  the 
previous review. It should be noted that the low utilisation rate during the RIP was a 
consequence of temporary events, and that the use of an estimated 29% of US installed 
capacity  could  not  be  investigated  due  to  a  lack  of  cooperation.  At  the  same  time 
demand  on  the  US  market  is  expected  to  grow  at  a  slightly  lower  pace  than  in  the 
Community and excess capacity in the USA is expected to be absorbed at the earliest 
by  2013.  Furthermore,  US  producers  have  an  incentive  to  increase  their  sales  to  the 
Community  market,  should  measures  be  repealed,  since  in  a  number  of  instances 
prices  in  the  Community  were  found  to  be  higher  than  prices  charged  either  in  the 
domestic  USA  market  or  in  any  other  export  market  served  by  the  US  producers 
during  the  RIP.  The  aforementioned  points  show  that  there  is  an  incentive  for  US 
companies to increase their presence in the Community market. This would lead to an 
oversupply and the ensuing downwards spiral of prices, i.e. an even higher volume of 
dumped  imports  than  during  the  RIP.  The  likelihood  of  continued/increased  dumped 
imports based on RIP data is further exacerbated if post RIP developments are taken 
into account. Following the RIP and as a result of the world economic crisis, US prices 
surpassed EU prices for a significant part of the product concerned while price levels 
in the rest of the world are generally lower. The post RIP development clearly entails 
that  if  US  producers  were  to  compete  with  the  Community  industry  their  products 
would have to enter at dumped prices at an even larger scale than during the RIP.  

(51)  To conclude, there is a likelihood of continuation of dumping and a risk of an increase 
of  the  volume  of  imports  possibly  exerting  a  downward  pressure  on  prices  in  the 
Community, at least in the period leading to 2013, if measures were repealed. 

D. DEFINITION OF THE COMMUNITY INDUSTRY 

EN 

17 

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(52)  The  complaint  was  lodged  on  behalf  of  four  known  EU  ethanolamine  producers, 
representing a major proportion of the total known Community production of the like 
product, i.e. in this case more than 95%.  

(53)  The  four  applicant  Community  producers  fully  cooperated  in  the  investigation. 
Another  Community  company,  LUKOIL  Neftochim  Bourgas  AD,  supported  the 
complaint as Community producer but did not reply to the questionnaire and did not 
provide  any  other  information  or  data.  The  applicant  Community  producers  have 
production sites in France, Germany, Sweden and Belgium.  

(54) 

It should be noted that one Community producer, INEOS Oxide Ltd, has also product 
interests in the USA. During the investigation this particular producer declared that it 
considers  itself  as  a committed  Community producer. The company imported  during 
the  RIP  the  product  concerned  from  its  related  US  producer  but  the  proportion  of 
imports  in  relation  to  its  Community  production  is  less  than  10%.  Furthermore, 
according to the available information, this producer has plans to expand capacity in 
the  Community  by  the  end  of  2010.  In  line  with  the  above  this  company  can  be 
considered as a genuine Community producer since its imports are not the core part of 
its  business  activity.  Therefore,  it  is  not  considered  appropriate  to  exclude  this 
producer from the definition of the Community industry in line with Article 4(1)(a) of 
the basic Regulation.  

(55)  On  this  basis  the  four  Community  producers  are  BASF  SE/AG,  INEOS  Oxide  Ltd, 
Sasol Germany GmbH and Akzo Nobel Functional Chemicals AB and they constitute 
the  Community  industry  within  the  meaning  of  Article  4(1)  and  Article  5(4)  of  the 
basic Regulation. They will hereinafter be referred to as the ‘Community industry’. 

(56)  The  investigation  showed  that,  like  in  the  previous  review  investigation,  part  of  the 
production  of  ethanolamines  in  the  Community  is  intended  for  internal,  or  captive, 
use.  Three  of  the  four  companies  belonging  to  the  Community  industry  produce  for 
captive use. The investigation confirmed that the Community industry do not purchase 
the  product  concerned  for  captive  use  from  independent  parties,  either  inside  or 
outside the Community, and that captive production is used for the production of other 
downstream products. Ethanolamines for captive use are therefore not considered to be 
in competition with ethanolamines available on the Community market (hereafter the 
free market).  

E. SITUATION ON THE COMMUNITY MARKET 

1. 

Community consumption 

(57)  Community  consumption  was  based  on  the  combination  of  the  volume  of  the 
Community  producers’  own  production  destined  for  free  sale  on  the  Community 
market and for captive use by these producers and the volumes of imports from third 
countries  into  the  Community  market  minus  exports  of  the  Community  producers. 
Estimations  for  the  non-cooperating  producer,  which  represents  a  very  small  part  of 
Community production, were also added.  

(58)  On this basis, the Community consumption developed as follows: 

Consumption 

2005 

2006 

2007 

RIP 

EN 

18 

   EN 

 
(in tonnes) 

Total 

Index 

439.521 

438.872 

479.361 

475.269 

100 

100 

109 

108 

Captive 

248.994 

246.857 

243.995 

206.982 

Index 

100 

99 

98 

83 

Free Market  

190.505 

192.010 

235.461 

268.386 

Index 

100 

101 

124 

141 

Source: Questionnaire replies and Eurostat  

(59)  Free market consumption increased by 41% over the period considered with the most 
significant  part  of  the  increase  taking  place  between  2007  and  RIP.  Concerning  the 
captive market, consumption decreased by 17%. 

2. 

Imports from the USA 

Volume, price and market share of dumped imports from the country concerned 

(60)  The volume of imports of the product concerned into the Community from the USA 
decreased  by  16%  over  the  period  considered.  Nevertheless,  a  slight  increase  of 
imports  has  been  observed  from  2007  to  the  RIP.  In  sum  the  US  producers  did  not 
increase  their  exports  to  the  EU  because  of  (i)  operational  problems  (the  material 
impact  of  hurricanes  upon  US  production  and  exports)  and  the  consequent  need  to 
satisfy  the  US  domestic  market  and  (ii)  the  tightening  of  the  global  supply/demand 
instrumented by production failures in other parts of the world and enhanced business 
opportunities to shift raw material used for ethanolamines to the production of MEG. 
Furthermore,  during  the  period  considered  one  US  producer  has  almost  halted  its 
exports to the EU thus contributing to the observed decrease. It should be also noted 
that considerable part of imports from the USA during the RIP were not dumped.  

Imports (in tonnes) 

2005 

2006 

2007 

RIP 

Product concerned 

44.912 

39.641 

35.892 

37.583 

Index 

100 

88 

80 

84 

Source: Questionnaire replies and Eurostat 

(61)  The average import price increased steadily throughout the period considered. Overall, 
the average import price from the USA was always lower than the average prices of 
the Community industry.  

import 
Average 
price  per  tonne  (in 

2005 

2006 

2007 

RIP 

EN 

19 

   EN 

 
EUR) 

Product concerned 

Index 

825 

100 

974 

118 

1.000 

1.114 

121 

135 

Source: Questionnaire replies and Eurostat  

(62)  The market share of imports from the USA decreased by 9.6 percentage points during 
the period considered. This again is attributed to the problems outlined above in recital 
(60).  

US market share 

2005 

2006 

2007 

RIP 

Product concerned 

23,6% 

20,6% 

15,2% 

14,0% 

Index 

100 

88 

65 

59 

Source: Questionnaire replies and Eurostat  

Undercutting 

(63)  For  the  purpose  of  analysing  price  undercutting,  the  import  prices  of  the  two 
cooperating exporting producers charged to independent customers were compared to 
the  Community  industry  prices,  on  the  basis  of  weighted  averages  for  comparable 
product types during the RIP. The Community industry prices were adjusted to an ex-
works level, and compared to CIF Community frontier import prices that included all 
types of customs duties. This price comparison was made for transactions at the same 
level  of  trade,  duly  adjusted  where  necessary,  and  after  deduction  of  rebates  and 
discounts.  

(64)  On  the  basis  of  the  above  methodology  no  price  undercutting  of  the  Community 

industry sales prices was found.  

3. 

Imports from other third countries 

(65) 

Imports  from  other  third  countries  have  increased  steadily  during  the  period 
considered with their peak being 2007 and have shown a decreasing tendency between 
2007 and the RIP. Nevertheless, during the period considered, they always remained 
significantly below those of the USA. The main other exporting countries are Russia, 
Mexico, Iran and Taiwan. Apart from Russia, that has a steady increase of exports, all 
the remaining countries present an incoherent evolution of exports with increases and 
decreases of quantities from year to year.  

Imports from 
other 
countries 

2005 

2006 

2007 

RIP 

Tonnes 

7.862 

16.021 

23.086 

19.644 

EN 

20 

   EN 

 
Index 

Market 
Share 

100 

204 

294 

4,1% 

8,3% 

9,8% 

Index 

100 

202 

238 

Import  price 
EUR/tonne 

1.215 

1.177 

1.402 

Index 

100 

97 

115 

Source: Eurostat  

250 

7,3% 

177 

1.459 

120 

4. 

Economic situation of the Community industry 

(66) 

It is recalled that the industry also produces for captive use. The following indicators 
have been established on the basis of both free market sales and captive use: stocks, 
production, capacity, capacity utilisation, investment, return on investment, cash flow, 
ability to raise capital, employment, productivity and wages. The remaining indicators, 
notably  sales  and  profit,  refer  to  free  market  sales.  Given  the  development  of  the 
captive market, i.e. that captive consumption is broadly in line with the development 
of  sales  of  the  free  market,  the  findings  concerning  the  captive  market  can  be 
extrapolated. 

Production, capacity and capacity utilisation 

(67)  During  the  period  considered,  the  Community  industry's  production  and  capacity 
increased gradually by 13%. Capacity utilisation of the Community industry remained 
stable  at  a  high  level  just  below  90%.  According  to  the  available  information,  this 
level of capacity utilisation is close to the maximum level for the industry concerned. 
The parallel increase in production and capacity, which stayed in any event lower than 
the  increasing  Community  consumption,  confirms  that  the  Community  industry  was 
able to profit from the existing measures and to benefit from the increase in demand of 
the  product  concerned  (attributed  to  the  growing  demand  in  the  various  downstream 
industries using ethanolamines).  

2005 

2006 

2007 

RIP 

Production 
(tonnes) 

Index 

375.119 

371.688 

407.744 

424.526 

100 

99 

109 

113 

Capacity (tonnes) 

424.000 

432.000 

458.000 

477.000 

Index 

100 

Capacity utilisation 

88% 

102 

86% 

108 

89% 

113 

89% 

EN 

21 

   EN 

 
 
Index 

100 

97 

101 

101 

Source: Questionnaire replies 

Stocks 

(68)  The  stocks  of  the  Community  industry  have  also  increased  in  line  with  the  overall 
increase  in  Community  consumption.  In  any  event,  this  is  not  considered  as  a  very 
meaningful  indicator  because  ethanolamine  production  is  customer-specific  and 
mostly based on long term contracts usually concluded towards the end of the calendar 
year.  

2005 

8.906 

100 

2006 

10.113 

114 

2007 

9.250 

104 

RIP 

11.097 

125 

Stocks (tonnes) 

Index 

Source: Questionnaire replies 

Sales volume, sales price and market share 

(69)  Sales  of  the  Community  industry  increased  significantly  throughout  the  period 
considered (up by 54%). Nevertheless, given the parallel important increase in the free 
market  Community  consumption,  the  increase  in  market  share  of  the  Community 
industry was relatively modest (increased by 6,4 percentage points) during the period 
considered.  These  trends  confirm  that  the  Community  industry  was  in  position  to 
benefit  from  the  measures  in  place.  The  average  unit  price  of  the  Community 
industry's  own  production  increased  by  31%  in  the  period  considered.  This  situation 
reflects  the  substantial  increase  in  prices  of  raw  materials  used  to  manufacture 
ethanolamines but also an increased profitability, in particular in the RIP. 

(70)  The  observed  increase  in  Community  industry's  sales  prices  is  also  in  line  with  the 
worldwide increase of prices in the ethanolamine world market. This phenomenon is 
attributed to a series of extraordinary and temporary events that took effect during the 
period considered and in particular from 2007 to the RIP. On the one hand, costs for 
raw  materials  (ethylene  oxide,  mainly  a  petrol-based  derivative  and  ammonia)  have 
increased  significantly  during  this  period.  On  the  other  hand,  the  world  market  has 
seen  a  significant  tightening  of  the  global  supply/demand  balance  during  the  same 
period. This was the result of different factors such as: problems in the US production 
and  exports  caused  by  hurricanes,  production  difficulties  in  Asia,  a  strong  surge  in 
demand for downstream products (agrochemicals and more precisely glyphosate) that 
use ethanolamines as raw material, and problems in the manufacturing of products (in 
particular MEG) using the same raw materials as for the production of ethanolamines 
that led producers manufacturing both MEG and ethanolamines to shift temporarily to 
the former.  

Sales 
the 
in 
Community  of  the 
like  product  in  free 
market consumption 

2005 

2006 

2007 

RIP 

EN 

22 

   EN 

 
 
Volume (tonnes) 

132.003 

130.575 

169.403 

203.090 

Index 

100 

99 

128 

154 

Average  sales  price 
(EUR/tonne) 

1.044 

1.141 

1.189 

1.366 

Index 

100 

109 

114 

131 

Market share 

69,0% 

68,0% 

72,9% 

76,6% 

Index 

100 

98 

106 

111 

Source: Questionnaire replies 

Profitability 

(71)  Over  the  period  considered  the  Community  industry  enhanced  significantly  its 
profitability. This improvement is to be seen in the context of: worldwide increase in 
ethanolamine prices, the decision of one US producer to almost halt its exports to the 
EU,  which  contributed  to  the  decrease  of  imports  from  the  USA,  and  an  increasing 
demand  of  ethanolamines  both  in  the  Community  and  worldwide.  The  latter  had  as 
consequence an increase in sales volumes as well as an increase in sales price levels 
that were, by the end of the RIP, more prominent than the corresponding increases in 
the cost of production. 

2005 

2006 

2007 

RIP 

Profitability 
Community industry 

10,1% 

16,0% 

15,8% 

21,9% 

Index 

100 

159 

157 

217 

Source: Questionnaire replies 

Investment, return on investment, cash flow and the ability to raise capital 

(72)  The  level  of  investments  shows  a  non  linear  evolution  during  the  period  considered. 
The  investments  were,  on  the  one  hand,  necessary  for  the  maintenance  of  their 
manufacturing  sites  plans  and,  on  the  other  hand,  for  moderate  capacity  additions  in 
order to take advantage of the increase in consumption and to satisfy export needs. The 
return on investment, expressed in terms of net profits of the Community industry and 
the  net  book  value  of  its  investments,  shows  a  significant  improving  trend  in  the 
period  considered.  The  Community  industry's  cash  flow  also  shows  a  substantial 
improvement in the period considered.  

2005 

2006 

2007 

RIP 

EN 

23 

   EN 

 
 
 
 
 
Investments (EUR) 

980.213 

6.396.684 

1.505.707 

2.454.173 

Index 

Return on net assets 

Index 

100 

45% 

100 

654 

54% 

121 

154 

55% 

123 

250 

87% 

195 

Cash flow (EUR) 

22.831.675 

34.807.468 

36.971.471 

55.859.958 

Index 

100 

152 

162 

245 

Source: Questionnaire replies 

Employment, productivity and wages 

(73)  The Community industry's number of employees involved in the production of the like 
product  increased  modestly  during  the  period  considered.  The  Community  industry 
was able to control the evolution of the average labour cost per employee during the 
period  considered.  Productivity,  expressed  in  terms  of  output  per  worker,  slightly 
improved  in  the  same  period.  The  evolution  in  labour  costs  and  productivity  had  a 
positive  impact  in  keeping  firm  control  over  the  production  cost  and  helped  the 
improvement of profit results. 

Employment 

Index 

Productivity 
tonnes per worker) 

(in 

2005 

2006 

2007 

100 

100 

104 

103 

104 

104 

RIP 

110 

110 

3.749 

3.591 

3.916 

3.858 

Index 

100 

96 

104 

103 

Average  labour  cost 
per worker (in EUR)  

2.389 

2.629 

2.449 

2.262 

Index 

100 

110 

103 

95 

Source: Questionnaire replies 

Magnitude of dumping  

(74)  Dumping  continued  during  the  RIP,  even  if  at  levels  lower  than  established  in  the 

previous review investigation. 

Recovery from past dumping 

(75)  As demonstrated above, the Community industry has had the chance to recover from 

past dumping in particular in terms of profitability, sales and market share.  

EN 

24 

   EN 

 
 
(76)  The Community industry's export volumes to third countries increased by 21% during 
the period considered. This significant amelioration started from 2007 and continued 
up to the RIP and was mainly attributed to the surge in demand for ethanolamines in 
the  Asian  markets  due  to  production  difficulties  that  occurred  in  these  particular 
markets during the same period. Export sales prices have followed a similar pattern as 
Community prices. This situation is again attributed to the fact that the period between 
2007  and  the  RIP  has  been  characterized  by  a  significant  tightening  of  the  global 
supply/demand balance.  

2005 

2006 

2007 

RIP 

CI export volume (in 
tonnes) 

18.308 

14.055 

22.746 

22.228 

Index 

100 

77 

124 

121 

Export sales price 

1.223 

1.293 

1.241 

1.689 

Index 

100 

106 

101 

138 

Source: Questionnaire replies  

5. 

Conclusion on the situation on the Community market 

(77)  The volume of ethanolamines consumed on the Community market expanded by 41% 
while imports from the USA declined by 16% over the period considered. At the same 
time, the Community industry increased its sales volume and its corresponding market 
share.  

(78)  The  economic  situation  of  the  Community  industry  improved  during  the  period 
considered.  The  relevant  injury  indicators  describe  a  good  state  of  play  in  terms  of 
business  performance.  The  Community  industry  was  working  at  high  capacity, 
achieving  significant  profit  margins,  maintaining  a  stable  cash  flow,  increasing 
investments  and  keeping  labour  cost  under  control.  Furthermore,  the  Community 
industry was able to benefit from a series of exceptional events that took effect during 
the period between 2007 and the RIP that brought prices up and influenced positively 
its business performance.  

(79)  To  conclude,  in  view  of  the  positive  development  of  the  indicators  pertaining  to  the 
Community  industry,  it  could  not  be  established  that  material  injury  has  continued. 
Therefore, it was examined whether there is a likelihood of recurrence of injury should 
measures be allowed to expire.  

F. LIKELIHOOD OF A RECURRENCE OF INJURY 

Summary of the analysis of the likelihood of the continuation of dumping and the recurrence 
of injurious dumping  

(80) 

It is recalled that continuation of dumping during the RIP was established for two US 
exporting producers. One of the two dumping exporters did not cooperate. In view of 
the fact that it is subject to the highest anti-dumping measures while at the same time 

EN 

25 

   EN 

 
 
being a major producer in the US market, it would have the highest incentive to return 
to the Community market, if measures were terminated.  

Likelihood analysis in relation to the facts established for the RIP  

(81)  As  set  out  in  more  detail  in  section  C  ('likelihood  of  a  continuation  or  recurrence  of 
dumping'),  the  investigation  has  established  a  number  of  factors  which  point  to  the 
likelihood  of  a  substantial  increase  of  dumped  imports  from  the  United  States  if 
measures were to be repealed. These factors are notably: 

– 

– 

– 

– 

– 

– 

US producers' spare capacity of 60 000 tonnes, which is not expected to be absorbed 

in the near future; 

Expected  self  sufficiency  of  traditional  US  export  markets,  thus  forcing  US 
producersto shift exports to the Community. This is notably true for the export markets in 
Latin America and Asia21. It is recalled that the Asian markets play an important role in the 
US producers' ability to dispose their surpluses of ethanolamines; 

Chinese  anti-dumping  duties  imposed  on  two  out  of  three  product  types  against  a 

number of countries, including the USA; 

Pressure  of  increased  production  due  to  a  shift  from  MEG  to  EOA  production. 
Overcapacity  and  low  prices  in  the  MEG  business  will  push  producers  to  favour  EAO 
rather  than  MEG  production,  thus  creating  new  EAO  capacities  and  putting  pressure  on 
prices; 

The  development  of  EAO  demand  in  the  US  is  projected  to  be  lower  than  in  other 

parts of the world, including the Community; 

The average growth rate in demand in the Community is expected to be higher than 
the one in the US thus providing a further incentive to the US exporting producers to target 
their exports to the Community; 

–   

The available information concerning one non-cooperating US producer points to the 
conclusion  that  even  companies  that  did  not  cooperate  with  the  investigation  and  have 
minimized their exports to the Community are still very much interested in staying in the 
EU market and enhancing their export activities. 

(82) 

Account  taken  of  the  above,  the  US  producers  will  have  to  find  additional 
clients  and  the  most  feasible  option  for  them  would  be  to  resort  to  the  Community 
market. 

(83)  During the RIP, the Community industry was doing well. The reason for this can be 
found  in  the  strong  demand  for  the  product  concerned  that  exceeded  the  offer. 
Nevertheless,  any  increase  in  imports  of  the  already  dumped  ethanolamines 
originating  in  the  USA  would  put  considerable  pressure  on  the  Community  industry 
and undermine its performance. 

21 

Tecnon OrbiChem publication, 17th March 2009. 

EN 

26 

   EN 

 
 
                                                 
(84) 

It is also noted that ethalonamines are a commodity, i.e. the various product types are 
produced  to  certain  technical  standards  and  products  from  one  source  can  easily  be 
substituted  by  products  from  another  source.  Thus,  in  a  market  characterised  by 
oversupply, competition will mainly be on the basis of price.  

(85)  Against  this  backdrop,  the  combination  of  factors  described  above  can  relatively 
quickly  put  in  danger  the  strong  demand  in  ethanolamines  and  lead  to  a  situation  of 
oversupply in the Community market. An increase of dumped imports would exercise 
a downward pressure on the sales price level and would, in turn, negatively affect the 
Community  industry's  performance-related  indictors,  notably  profitability.  In  case 
increased dumping were to occur, price undercutting would be established.  

Effect of the current economic crisis  

(86)  The  likelihood  of  a  recurrence  of  injury  as  described  in  the  previous  section  is 
exacerbated  by  the  fact  that  the  ethalonamine  market  has  changed  following  the 
economic  crisis  that  came  to  the  fore  in  autumn  2008.  Many  key  parameters  have 
changed  considerably,  both  as  far  as  exports  and  the  situation  of  the  Community 
industry are concerned. As explained above, available information suggests that there 
is a strong build-up of dumped imports post RIP due to the fact that US price levels for 
two product types are above European price levels while the price differential for the 
third type is quickly vanishing. In this line, Eurostat data show that during the second 
quarter of 2009 imports from the US (i.e. 15 052 tonnes) arrived into the Community 
20% cheaper than during the RIP. 

(87)  Without any measures, these increased dumped imports would confront a Community 
industry that is considerably weakened. Indeed, public available information collected 
in  the  course  of  the  investigation  point  to  reduced  demand,  sales  and  economies  of 
scale,  idle  production  capacity,  decreasing  financial  performance  etc22.  Due  to  the 
current  economic  crisis,  the  Community  ethanolamine  market  faced  weak  demand. 
Community industry producers were therefore forced to reduce their outputs. 

(88)  Community industry is currently operating at a capacity utilisation level of 70%, i.e. 
much lower than the RIP period level of almost full capacity. Furthermore, the volume 
of sales of the Community industry has fallen by approximately 30% while at the same 
time  sales  prices  have  fallen  post  RIP  by  35-40%.  At  the  same  time  the  post  RIP 
evolution  of  cost  of  production  and  profitability  reveals  that  there  seems  to  be  a 
serious  imbalance  between  raw  material  cost  and  ethanolamine  prices  thus  further 
undermining the financial performance of the Community industry. Indeed, the cost of 
the two main raw materials used in ethanolamine production (ethylene and ammonia) 
has decreased over the post RIP period by materially less than the fall in ethanolamine 
prices. This has led to a serious loss in the profit margins of the Community industry 
which is currently observing either losses or single digit profit margins. 

(89) 

In other words, the Community industry is no longer in a seemingly robust situation, 
but in a situation where pressure from dumped imports will more than likely set into 

22 

Tecnon OrbiChem publication, 14th August 2009; ICIS 15th April 2009 & 19th April 2009 publications; 
PCI data (November 2008 to July 2009 issues). 

EN 

27 

   EN 

 
                                                 
motion a dangerous downward spiral which will by far exceed the one found likely on 
the basis of the RIP data.  

(90)  The above economic situation has reduced the Community industry's business options. 
On  the  one  hand,  the  Community  industry  would  not  be  in  a  position  to  expand  its 
customer base in the EU account taken of the fact that no indication exists that its main 
competitors in the Community market (i.e. the US producers) have stopped exporting 
to  the  EU.  On  the  other  hand,  it  also  seems  not  possible  to  ease  pressure  on  the 
Community industry by output increases in captive use as no indication exists that the 
economic  prospects  of  downstream  products  (like  ethyleneamines,  herbicides  and 
catalysts) could outweigh the pressure on the ethanolamine market.  

Conclusion on the likelihood of recurrence of injury 

(91) 

In the case measures were repealed, there is strong likelihood of a significant increase 
of  dumped  US  imports  to  the  Community  that  could  only  lead  to  a  recurrence  of 
injury. US producers are loosing traditional markets while the MEG oversupply would 
lead to an increase in the ethanolamine production that would have to be sold in other 
markets  than  the  US.  Moreover,  the  economic  crisis  has  affected  the  Community 
industry  which  is  facing  pressure  from  the  existing  US  dumped  imports  without 
having any viable alternative solution to address injurious dumping other than via the 
continuation of AD duties. No indication was found that would lead to the conclusion 
that this situation will not be exacerbated, should measures be allowed to expiry.  

G. COMMUNITY INTEREST 

1. Preliminary remark 

(92) 

(93) 

In  accordance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether 
maintaining the anti-dumping measures currently in force would be against the interest 
of the Community as a whole. The determination of Community interest was based on 
an  appreciation  of  all  the  various  interests  involved,  i.e.  those  of  the  Community 
industry, importers, traders, wholesalers and industrial users of the product concerned. 

It  should  be  recalled  that  in  the  previous  investigations,  the  imposition  of  measures 
was  not  considered  to  be  against  the  Community  interest.  Furthermore,  the  present 
investigation  is  an  expiry  review,  thus  analysing  a  situation  in  which  anti-dumping 
measures are in place. 

(94)  On this basis it was examined whether, despite the conclusion on the likelihood of a 
continuation  of  dumping  and  likelihood  of  recurrence  of  injury,  compelling  reasons 
exist  which  would  lead  to  the  conclusion,  in  this  particular  case,  that  it  is  not  in  the 
Community interest to maintain measures. 

2. Interest of the Community industry 

(95) 

It  is  recalled  that  dumping  during  the  RIP  was  still  present  and  that  there  exists  a 
likelihood  of  continuation  of  dumping  of  the  product  concerned  originating  in  the 
USA and of recurrence of injury to the Community industry. 

(96)  The  Community  industry  has  proven  to  be  a  viable  and  competitive  industry, 
confirmed  by  the  positive  development  of  most  economic  indicators.  The  previously 

EN 

28 

   EN 

 
imposed anti-dumping measures contributed to restore profitability and allowed for a 
sufficient  return  on  investment.  This  could  benefit  new  investments  in  2010. 
Therefore, it is in the interest of the Community industry to maintain measures against 
dumped imports from the USA. 

3. Interest of importers and traders/wholesalers 

(97)  Given the lack of cooperation of any trader and wholesaler, it was concluded that the 
absence  or  continuation  of  measures  does  not  affect  these  parties  to  a  great  extent. 
Moreover,  the  investigation  did  not  show  the  existence  of  any  unrelated  importers 
since all imports into the Community of the product concerned originating in the USA 
are made via importers related to the US exporting producers. 

(98)  The  continuation  of  the  measures  will  not  change  the  current  situation  of  the  related 
importers, who were found to have realised profits during the RIP at margins in line 
with  market  conditions.  In  any  event,  at  least  in  a  case  like  the  one  at  hand,  the 
interests  of  related  importers  form  an  integral  part  of  the  interests  of  the  exporting 
producers  since  the  latter  can  determine  the  policy  of  the  related  importers.  It  is 
recalled  that  the  interests  of  exporting  producers  are  not  part  of  the  Community 
interest analysis. 

4. Interest of industrial users 

(99)  Based on the fact that the continuation of the measures would represent a third renewal 
of anti-dumping measures, particular attention was paid to the interest of the industrial 
users. 

(100)  Only one user belonging to the esterquat business for fabric softeners came forward in 
this  investigation.  Esterquats  are  produced  on  the  basis  of  TEA  (one  of  the  three 
ethanolamine  product  types)  and  are  used  as  fabric  softeners  commercialized  by 
companies  such  as  Unilever,  Henkel,  Colgate  Palmolive,  Procter  &  Gamble  and 
the  RIP 
Benckiser/Reckitt.  The 
ethanolamines from both the US and the Community industry. The imports from this 
industrial user represented a small share of the total US imports (ranging between 15% 
and 25% - the precise figure cannot be disclosed for reasons of confidentiality). 

in  question  procured  during 

industrial  user 

(101)  The sole cooperating industrial user argued that Community users are suffering from 
the  anti-dumping  measures  because  they  depend  on  ethanolamine  imports  as  an 
additional  source  to  cover  their  EU  demand.  It  also  claimed  that  Community  users 
operate  in  highly  competitive  and  price  sensitive  markets  with  pressure  from  the 
downstream  producers.  They  also  have  to  buy  raw  materials  at  the  lowest  price 
possible  in  order  to  minimise  costs.  Thus,  according  to  this  industrial  user,  any 
increase  of  the  ethanolamine  price  is  putting  its  business  activities  in  danger  and 
undermines  its  profitability.  Therefore,  this  party  concluded  that  the  continuation  of 
measures  is  not  in  the  Community  interest  since  the  aforesaid  situation  would  be 
alleviated if the anti-dumping measures were allowed to lapse. 

(102)  It was found that, during the RIP, TEA represented an important part (ranging between 
20%  to  30%)  of  the  total  cost  of  production  of  esterquats  for  the  sole  cooperating 
industrial user. It is clear that the elimination of the anti-dumping measures would, at 
least in the short term, alleviate the burden placed on this company by the cost of TEA 

EN 

29 

   EN 

 
as raw material. Nevertheless, account taken of the fact that this company is procuring 
very  significant  amounts  of  TEA  from  the  Community  industry,  the  final  impact  of 
any  change  in  the  anti-dumping  measures  is  not  expected  to  be  significant  for  this 
particular industrial user. In this respect the Commission examined the impact of the 
current  anti-dumping  measures  on  the  company's  turnover  as  regards  the  esterquat 
business  using  the  US  imported  ethanolamines.  Available  data  suggests  that  the 
overall  impact  of  the  anti-dumping  duty  is  moderate  (ranging  between  1%  and  5%, 
precise  figure  cannot  be  disclosed  for  reasons  of  confidentiality)  on  the  relevant 
company's turnover. This explains why the company was able to continue its business 
activities in this sector despite a significant increase in ethalonamine prices up to the 
RIP and despite the existence of anti-dumping measures. It should also be noted that 
esterquats  represent  only  a  relatively  moderate  part  of  the  total  activities  of  this 
industrial user. 

(103)  The post RIP evolution of TEA prices and their impact to the cost of production of the 
sole  cooperating  industrial  user  was  also  examined.  In  this  respect  it  is  recalled  that 
prices  of  ethanolamines  have  decreased  significantly  following  the  RIP.  Given  the 
observed price evolution of TEA and the cost structure of the esterquats business, it is 
considered  that  the  incidence  of  TEA  in  the  full  cost  of  the  finished  product  has 
decreased post RIP. On the basis of the available data it appears that, for this particular 
industrial user, the reduction in the TEA prices could lead to a reduction of TEA cost 
in the range of 20% to 25%. The corresponding effect in the full cost of production of 
the finished goods would be a reduction in the range of 15% to 20%.  

(104)  The impact of any continuation of the anti-dumping measures on the sole cooperating 
industrial  user  was  also  analyzed  by  examining  its  past  economic  performance,  in 
particular with relation to its profitability and sales. With respect to profitability it was 
found  that,  during  the  period  considered,  despite  the  measure  in  force,  the  sole 
cooperating industrial user achieved marginal profitability  for  products  incorporating 
ethanolamines. With respect to sales it was found that the sole cooperating industrial 
user  significantly  increased  its  export  sales  for  products incorporating  ethanolamines 
while its Community sales slightly decreased. The aforesaid trends applied equally to 
products  produced  with  ethanolamines  originating  in  the  USA  or  originating  in  the 
EU. This situation highlights the fact that the existence of anti-dumping measures did 
not have any impact to the company's decision making process with respect to sales, 
thus  confirming  that  the  company  was  able  to  continue  performing  successfully 
without  any  significant  noticeable  problems  in  its  sales  and  profitability.  No 
compelling  fact  was  found  to  point  out  that  the  aforesaid  situation  would  change  if 
anti-dumping measures are prolonged. 

(105)  Finally, no compelling evidence could be found to substantiate the claim that the tight 
market  for  industrial  users  is  directly  attributable  to  shortages  in  the  supply  of 
ethanolamines from the Community industry. 

(106)  In  summary,  during  the  RIP,  the  effect  of  the  anti-dumping  duty  on  the  cooperating 
industrial  user's  cost  of  production  of  the  finished  products  is  rather  limited  and  the 
abolition  of  the  anti-dumping  measures  would  only  have  provided  a  marginal 
alleviation. Furthermore, the post RIP situation with respect to TEA prices already has 
a  positive  impact  to  the  company's  cost  structure.  Therefore,  it  was  decided  that  a 
continuation  of  the  measures  would  not  significantly  affect  the  sole  cooperating 
industrial  user.  Account  taken  of  the  fact  that  no  other  user  cooperated  with  the 

EN 

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investigation and no further relevant information was submitted by any party on this 
particular matter, it is conduced that the aforesaid analysis should equally apply to all 
industrial users that might be concerned by the ethanolamine market.  

5. Conclusion on Community interest 

(107)  The investigation has shown that the existing anti-dumping measures have contributed 
to  the  recovery  of  the  Community  industry.  The  Community  industry  would  benefit 
from  a  continuation  of  the  measures  by  upholding  current  profitable  price  levels, 
allowing  for  additional  investment.  If  measures  were  allowed  to  lapse,  this  would 
endanger  this  recovery  process,  as  described  in  detail  under  section  F  above. 
Therefore, the continuation of measures is in the interest of the Community industry. 

(108)  Unrelated  importers  do  not  seem  to  exist  and  unrelated  traders/wholesalers  did  not 
come forward. All imports originating in the USA are made via related traders, who, 
while measures were in place, were found to have obtained profit margins during the 
RIP that there in line with normal market rates. 

(109)  Furthermore, in the past, the existing measures appear not to have had any significant 
negative effect on the economic situation of the users. On the basis of the information 
collected during the current investigation, any price increase, if at all, resulting from 
the imposition of anti-dumping measures, does not appear to be disproportionate when 
compared  to  the  benefit  of  the  Community  industry  achieved  by  the  removal  of  the 
trade distortion caused by the dumped imports.  

(110)  Regarding  the  Community  interest,  it  is  therefore  concluded  that  there  are  no 
compelling reasons not to continue imposing the anti-dumping measures currently in 
force against imports of ethanolamines originating in the USA.  

(111)  It  is  therefore  considered  appropriate  to  maintain  the  current  anti-dumping  measures 

against imports of ethanolamines originating in the USA.  

H. ANTI-DUMPING MEASURES 

(112)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which it was intended to recommend that the existing measures be maintained. They 
were also granted a period to submit comments and claims subsequent to disclosure. 
Relevant representations submitted were analysed but have not lead to the alteration of 
the essential facts and considerations on the basis of which it was decided to maintain 
the current anti-dumping measures.  

(113)  The  investigation  showed  that  there  was  a  likelihood  of  continuation  of  dumping 
(including a likely increase of the volume of dumped exports) as well as a likelihood 
of recurrence of injury. 

(114)  Even taking into account that one of the two cooperating exporting producers was not 
dumping and (therefore) assuming for the future that its part of imports from the US 
will not be dumped, nevertheless the conditions for continuing duties on the basis of 
11(2) are complied with. 

(115)  It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
Regulation,  the  anti-dumping  measures  applicable  to  imports  of  ethanolamines 

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originating in the United States of America, imposed by Council Regulation (EC) No 
1583/2006, should be renewed.  

(116)  It is further considered that measures should be maintained for an additional period of 
two  years  only.  This  is  based  on  a  number  of  reasons  such  as:  the  existence  a 
likelihood of recurrence of injurious dumping based on the facts that (i) dumping by 
US exporting producers has continued, notwithstanding the measures in force, and (ii) 
an  expectation  of  increased  imports  into  the  Community  due  to  the  existing  excess 
production  capacity  of  60  000  tonnes  in  the  USA  and  the  lack  of  corresponding 
domestic demand capable of absorbing this excess capacity in the USA. Additionally, 
one  of  the  non-cooperating  US  producers  is  currently  subject  to  the  highest  anti-
dumping  duty  and  therefore  has  the  highest  incentive  to  return  to  the  Community 
market in case the measures lapse. It also has the necessary distribution network at its 
disposal  because  it  sells  other  chemical  products  in  the  Community  market  and  has 
given indications that it considers the EU as an important export market. 

(117)  Moreover,  US  excess  capacity  is  expected  to  disappear  gradually  towards  2013  and 
there are capacity expansions plans in the Community by the end of 2010. The latter 
considerations,  combined  with  the  uncertainty  of  the  impact  of  the  current  world 
economic crisis on the ethanolamine market (both at worldwide level but  even  more 
importantly  at  Community  level),  warrant  the  limitation  of  the  maintenance  of  the 
measures to two years.  

HAS ADOPTED THIS REGULATION: 

Article 1 

1.  A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  ethanolamines  currently 
falling within CN codes ex 2922 11 00 (monoethanolamine) (TARIC code 2922 11 00 10), ex 
2922 12 00 (diethanolamine) (TARIC code 2922 12 00 10) and 2922 13 10 (triethanolamine), 
originating in the United States of America. 

2.  The  rate  of  the  definitive  anti-dumping  duty  applicable  to  the  products  described  in 
paragraph 1 and manufactured by the companies below shall be as follows: 

Company 

Anti-dumping duty  

TARIC additional code 

The Dow Chemical 
Corporation 
2030 Dow Center 
Midland, Michigan 48674 
USA 
INEOS Americas LLC 
7770 Rangeline Road 
Theodore, Alabama 36582 
USA 
Huntsman Chemical 
Corporation 
3040 Post Oak Boulevard 
PO Box 27707 

(Euro per tonne) 

59,25  

69,40  

111,25  

A115 

A145 

A116 

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Houston, Texas 77056 
All other companies 

111,25  

A999 

3. Unless otherwise specified, the provisions in force concerning customs duties shall apply. 

4. In cases where goods have been damaged before entry into free circulation and, therefore, 
the price actually  paid or  payable is apportioned for the determination of the customs value 
pursuant  to  Article  145  of  Commission  Regulation  (EEC)  No  2454/9323,  the  amount  of  the 
antidumping  duty,  calculated  on  the  basis  of  the  amounts  set  above,  shall  be  reduced  by  a 
percentage which corresponds to the apportioning of the price actually paid or payable. 

Article 2 

This regulation shall enter into force on the day following that of its publication in the Official 
Journal of the European Union and shall be in force for a period of two years.  

This regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, […] 

For the Council 

23 

OJ L 253, 11.10.1993, p. 1. 

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