Wellington, June 24 NZPA - China has begun an anti-dumping investigation into methanol imported from New Zealand, Saudi Arabia, Malaysia and Indonesia.

The investigation will determine whether the material, used in blended gasoline, has been dumped onto the Chinese market at prices below production costs and ascertain the losses incurred by Chinese producers, the Chinese Commerce Ministry said on its website.

The Guardian newspaper in London reported such investigations are normally completed within a year, but could be extended another six months in "special circumstances".

Both New Zealand's methanol plants -- Motunui and Waitara -- are owned by Canadian methanol producer Methanex Corporation, the world's largest supplier of methanol.

It uses the Taranaki plant as "flexible production assets" and last October restarted its idled 900,000 tonne per year Motunui plant, and shut down the 530,000 tonne per year Waitara Valley plant.

Product from New Zealand facility is shipped to Asia Pacific countries with the marketing done through the Methanex office in Hong Kong, according to the company's website. About 92 percent of the methanol produced in New Zealand is sold for export to markets in China, Japan, and Korea.

Methanex admited recently that it had studied moving one of its New Zealand plants elsewhere in the world, but decided against it.

Methanex also has production facilities in Chile, Trinidad and Tobago, Egypt, Canada and other countries.

Methanol is used in pharmaceuticals, plastic bottles, adhesives, paints and as a fuel additive, among other uses.