In 2016, the EU imposed a punitive duty on Chinese steel because it was found that there was price dumping through Chinese state aid. However, wind turbine towers were exempted from the duty because they contribute to the green transition.
Danish tower manufacturers filed a case in the EU in 2020 about this decision. The tower manufacturers hoped that duties would also be imposed on towers produced from Chinese steel. And the Danish manufacturers were successful in their lawsuit.
This has now resulted in the EU Commission announcing that an anti-dumping duty of 7.2-19.2 percent will be imposed on Chinese-produced steel towers, depending on the manufacturer. This is a welcome development for Danish tower manufacturer Valmont SM.
- We note with satisfaction that the EU Commission is finally imposing duties on Chinese wind turbine towers. With the decision, the EU member states have said no to systematic Chinese price dumping, says Niels Brix, CEO of Valmont SM, in a press release.
The TEKNIQ Employers' Association, which represents approximately 4,100 companies within electricity, plumbing and industry, is also pleased with the decision from Brussels.
- It has become clear in recent years that Chinese manufacturers of wind turbine towers have received extensive state support to dump prices on the production of wind turbine towers. This has put pressure on European manufacturers, for example, and has been breaking the European value chain, says Alexander Severinsen Ulrich, chief consultant at TEKNIQ Employers' Association. He continues:
- Today's decision underlines that Europe is ready to fight for its green industry. This is definitely positive news for Danish business, which will not be able to accept any form of competition based on shoddy workmanship in the long or short term, says Alexander Severinsen Ulrich
Vestas: Annoying development
However, Vestas and several other wind turbine manufacturers do not share the enthusiasm. Vestas has tried to convince both the EU Commission and the Danish authorities that a punitive tariff would harm the green transition. Therefore, the company is also annoyed that the decision has gone against them, writes Finans.
"It is a regrettable development that further trade barriers are now being created on crucial components for the green transition. We purchase the vast majority of our towers for European projects in the local area, but we are fundamentally against measures that can make green technology less competitive and thus not benefit the green transition and green jobs in Europe," writes Morten Dyrholm in an email to Finans.
According to the Ministry of Business and Industry, the new tariff "will help to ensure better competitive conditions in the EU and strengthen European value chains for renewable energy." However, the ministry acknowledges that the tariff may also have negative consequences for Danish companies.
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