Investigation into allegations that Portuguese paper giant is “dumping” on the US market

According to Económico website, US authorities are going ahead with an investigation into allegations that Portuguese paper company Portucel is “dumping” uncoated paper on the North American market.

The issue began being looked into last month – and Portucel said at the time that if an investigation was entered into, it could show the group “had never been involved in these kinds of practices”.

Dumping involves the sale of products at knockdown prices.

According to Económico, Portucel is cited alongside other companies in Brazil, Indonesia, China and Australia.

The US department of commerce is understood to have ruled that the North American paper producing sector is being “materially prejudiced” by imports.

It will now be looking into Portucel’s exports to the US in 2013 – a year the company sent 160,000 metric tons across the Atlantic. Last year sales dropped by 10% but the company is still heavily invested in America and due to spend €110 million on a plant to produce “pellets”.

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