On Friday, October 4th, the US Department of Commerce issued a preliminary ruling against the Cabinet and Vanity producers in China with amounts ranging from 55% to 262% of anti-dumping and countervailing duties depending on the resource.
This would include to the 25% 301 duties in effect.
This ruling came as no surprise to MGroup™. We already began the steps to produce our millwork under our pivot program 18 months ago, when the first rumors of these politically-motivated taxes began to be discussed.
If your orders would have remained in China and the plan was to “hope for the best”, your new duties would be no less than 80% and as much as 278%, depending on from whom your order for this product type was placed. All Mstone® millwork orders were moved several months ago to production facilities in Eastern and Southern Europe or Malaysia, countries that do not have any Anti-Dumping, Trade War duties or duties of any type! Fortunately, our Mstone® customers will not be in for any surprises.
Yes, Free Trade still exists.
Most of our current millwork production has been moved to Malaysia, with a large number of our former Chinese highly skilled and experienced manufacturing personnel managing the work in the new factory. This approximately 100,000 square foot factory is controlled and produces exclusively for Mstone®. The only negative news about our production is that we are currently running 14-16 week scheduling in Malaysia due to the ramp up in production there, but we are now also producing in Eastern and Southern Europe. Our factories in Europe are large, solid production facilities with years of experience and are producing on a standard 10-12 week production and delivery cycle, with pricing only slightly higher than from Asia. A trade-off of a couple of additional weeks in production schedule to save a bundle on tariffs (taxes) seems to be a fair trade-off for most of our clients.
With three facilities now producing for Mstone® millwork and vanities in Malaysia, Eastern Europe, and Southern Europe, we are in a unique position to take on more and more orders. If you find your current supply chain disrupted or are concerned that your current resource might be putting you at extreme risk by simply taking Chinese products and running them through a foreign port and relabeling, a dubious and illegal practice known as “transshipping”, email email@example.com and get a quote and secure a manufacturing slot in one of our three facilities today.
No duties, no anti-dumping, and experienced, stable production.
Thanks for your continued support of MGroup™.