ADENTRA Announces Trade Case Update

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”.

Source: ADENTRA Inc.