March 22, 2018 / 4:29 PM / 10 months ago

UPDATE 1-Cenergy unit sees impact from anti-dumping investigation from 2019

(Adds detail from statement, Cenergy share price)

By Stratos Karakasidis

March 22 (Reuters) - A U.S. anti-dumping investigation targeting Greek pipemaker Corinth Pipeworks could affect results from 2019, one of parent company Cenergy Holdings’ co-chief executives said on Thursday.

Greece’s sole producer of large-diameter welded pipes to the oil and gas sector is under an anti-dumping duty (AD) investigation by the U.S. Department of Commerce based on petitions filed by six U.S. manufacturers.

“We see potential impact on full-year 2019 results but we are not able to measure it now. First signs will be seen in the first half of 2018 ... although it is clear that the case may be prolonged,” Apostolos Papavasileiou, chief executive of Corinth Pipeworks and co-CEO of Brussels-listed Cenergy, told Reuters.

In separate statement, Cenergy said the impact on Corinth Pipeworks would be “limited” and that it had taken steps to secure its financial position and mitigate adverse effects.

Corinth Pipeworks’ revenue amounted to 336 million euros ($413 million) in 2017, accounting for 47 percent of Cenergy’s total revenue.

The U.S. International Trade Commission (USITC) on March 12 said there is a reasonable indication of material injury or threat of material injury to the domestic U.S. industry from imports of pipes from Greece, Canada, China, India, Korea and Turkey allegedly sold in the U.S at less than their fair value.

Papavasileiou rejected the allegations against his company.

“The complaint against Corinth Pipeworks is poorly documented, unfair and we have strong arguments against the allegations,” he said.

“It’s hard for someone to believe that Corinth Pipeworks exports to the U.S. at a loss or that it is being subsidised in any way by the government.”

The U.S. Department of Commerce said that imports of large-diameter welded pipes from Greece totalled $70 million in 2016. India and Canada’s imports were worth $26 million and $66 million respectively while South Korea’s amounted to $150 million, it said.

Papavasileiou said that Corinth Pipework’s clients have said they will accept higher prices if the U.S. authorities impose duties on its products and that he sees steel tariffs as a bigger potential problem.

“We believe that the implementation of Section 232 (tariffs) may prove more threatening, not only for Greece but for the steel industry in general,” he said.

Cenergy shares were down 1.1 percent at 1.2 percent at 1620 GMT. ($1 = 0.8138 euros)

Reporting by Stratos Karakasidis Editing by David Goodman

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