LANGLEY,
BC, July 19, 2023 /CNW/ - ADENTRA Inc.
("ADENTRA" or the "Company") (TSX: ADEN) today announced that the
United States Department of Commerce ("Commerce") issued its final
determination ("Final Determination") with respect to a trade case
against hardwood plywood products produced in Vietnam. The
trade action alleges product of the type imported by
the Company from Vietnam
circumvents a previously established anti-dumping and
countervailing duty order against hardwood plywood from
China (the "Circumventing
Products").
In rendering its Final Determination, Commerce made several
changes to the preliminary determination it issued on July 25, 2022. As a result, the Company's
estimate of the value of products it imported from Vietnam subject to potential duties has been
reduced from US$25-US$30 million to US$7.6
million.
The duty rate in this trade case is 206%, which will be applied
against the US$7.6 million of imports
from Vietnam. With the issuance of this Final Determination,
the Company expects to accrue duties of US$15.7 million and record its impact on
financial results in the third quarter of 2023.
"While we welcome a decision being rendered in this matter, we
disagree with Commerce's Final Determination and believe that the
duty is unwarranted," said Rob
Brown, President and CEO. "We believe the products we
imported from Vietnam are clearly
outside the scope of Commerce's own definition of Circumventing
Products, and therefore should not be subject to duty. We have
comprehensive documentary evidence regarding material sourcing in
our supply chain which Commerce failed to consider. There are
well-established legal avenues to appeal this decision by Commerce
and we intend to vigorously pursue recovery of any duties
paid. The appeal process is typically a multi-year procedure
however and the timing and ultimate outcome of our efforts is not
estimable at this time."
About ADENTRA
ADENTRA is one of North
America's largest distributors of architectural products to
fabricators, home centers, and professional dealers servicing the
new residential, repair and remodel, and commercial construction
end markets. The Company currently operates a network in
North America of 86 facilities in
the United States and Canada. ADENTRA's common shares
are listed on the Toronto Stock Exchange under the symbol
"ADEN".
Forward-Looking Statements
Certain statements in this news release may constitute
"forward-looking information" or "financial outlook" within the
meaning of applicable securities laws that involve known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements or industry results to
be materially different from any future results, performance or
achievements or industry results expressed or implied by such
forward-looking information and financial outlook. Forward-looking
information and financial outlook are identified by the use of
terms and phrases such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "predict",
"project", "will", "would", and similar terms and phrases,
including references to assumptions. Such information may involve,
but is not limited to, comments with respect to strategies,
expectations, planned operations or future actions. Forward-looking
information in this news release includes, without limitation,
statements with respect to: the Company's estimate of the value of
products it imported from Vietnam
subject to potential duties has been reduced from US$25-US$30 million
to US$7.6 million; the duty rate in
this trade case is 206%, which will be applied against the
US$7.6 million of imports from
Vietnam; with the issuance of this
Final Determination, the Company expects to accrue duties of
US$15.7 million and record its impact
on financial results in the third quarter of 2023; we believe the
products we imported from Vietnam
are clearly outside the scope of Commerce's own definition of
Circumventing Products, and therefore should not be subject to
duty; there are well-established legal avenues to appeal this
decision by Commerce and we intend to vigorously pursue recovery of
any duties paid; and the appeal process is typically a multi-year
procedure however and the timing and ultimate outcome of our
efforts is not estimable at this time.
The forward-looking information and financial outlook in this
news release is subject to risks, uncertainties and other factors
that could cause actual results to differ materially from
historical results or results anticipated by the forward-looking
information. More information about the risks and uncertainties
affecting ADENTRA's business can be found in the "Risk Factors"
section of its Annual Information Form dated March 13, 2023 which is available under the
ADENTRA's profile on SEDAR at www.sedar.com.
Although ADENTRA has attempted to identify factors that would
cause actual actions, events or results to differ materially from
those disclosed in the forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Also, many of the factors are
beyond the control of ADENTRA. Accordingly, readers should not
place undue reliance on forward-looking statements or information
in this news release. The forward looking information is made as of
the date of this news release, and ADENTRA assumes no obligation to
publicly update or revise such forward-looking information to
reflect new information, subsequent or otherwise, except as may be
required by applicable securities law. The forward-looking
information contained herein is expressly qualified in its entirety
by this cautionary statement.
SOURCE ADENTRA Inc.