The July announcement from the Indian government that an anti-dumping duty will be imposed on MDF imported from Vietnam has caused CenturyPly India to reassess its plans for investment in Vietnam.
The duty is said to amount to over US$60 per cubic metre, roughly equivalent to 25 percent of the CIF price. At this level production in Vietnam for the Indian market would not be profitable according to CenturyPly so a decision has been taken to divest its stake in the Singapore subsidiary, Innovation Pacific, and exit from its MDF production plan in Vietnam.
On the domestic front in India plans have been drawn up for a new MDF plant in Hoshiarpur, Punjab which, itis said, will be the largest plant in India.
CenturyPly has investment heavily in facilities in Myanmar and Laos. In Myanmar they manufacture veneer and in Laos the company has a local partner to also produced veneer.
A spokesperson from CenturyPly said they are very eagerly waiting for the implementation of the new goods and service tax as this could boost market opportunities and should lift profits.
