Georgian Company Sued Over Dumped Prices in European Commission

TBILISI – French company Erachem Comilog have submitted a complaint to the European Commission against Georgian compant MN Chemical Georgia for setting dumping prices on manganese oxides.

According to Erachem Comilog, the manganese chemicals subsidiary of a French mining and metallurgical group Eramet Comilog, dumped prices by Georgian, Mexican, Brazilian and Indian companies have inflicted fiscal damage to the EU industry.

The complaint states that imports of manganese oxides from the above countries have increased overall and in terms of market share. The European Commission issues a complaint on December 15th and the investigation should be finished in around 15 months.

MN Chemical Georgia denies the French competitor’s allegations that their products have been sold at prime cost.

According to the company’s director, Mikheil Butskhrikidze, their activities are cost effective and profitable and the French company based their allegations of dumping from Georgia on a comparison of the price in the United States of America and on constructed normal value (manufacturing costs, selling, general and administrative costs and profit) in Georgia, which does not correspond to the Georgian reality.

“Prime cost consists of many components, if we compare, for example, the United States and Georgia in the amount of tax, energy resources and internal transportation costs or labor costs, obviously, we will see a very great difference between them; the minimum salary of workers there is $20 thousand per year, the minimum wage is $800 a month, while only 167 lari in Georgia; Accordingly, the production costs are cheaper here,” MN Chemical Georgia’s Director told Georgian online publication

According to MN Chemical Georgia, they are actively cooperating with the European Commission and have sent the necessary documents, however, they say it would be much simpler if Georgia had membership status of the EU’s economic market. In that case, the European Union would already have the data it required and the Georgian government would be more active in terms of member status.

MN Chemical Georgia, established in Rustavi, is the only producer of manganese oxides in Georgia. Products, which are used in animal food, exported to the EU since 2007 and they now hold 25-30% of the European market. Last year the overall export of manganese from Georgia was worth $5.6 million.


18 February 2016 12:52