KOREA AND TAIWAN CHARGED WITH DUMPING
BY STAINLESS STEEL PIPE PRODUCERS
WASHINGTON, Nov. 18 /PRNewswire/ -- The Specialty Tubing Group issued the following:
Domestic stainless steel pipe producers, smarting from steep declines in sales and profits, petitioned the U.S. government today to impose dumping duties on welded stainless steel pipe from Korea and Taiwan.
"Even using a conservative methodology, we still find large, double-digit margins of dumping by the Koreans and Taiwanese of their welded stainless steel pipe in the United States," said William K. Grant, chairman of the Specialty Tubing Group (STG) and president of the Trent Tube Division, Crucible Materials Corporation, East Troy, Wis. "All the evidence leads to the conclusion that the dumped imports have been and are a significant cause of material injury being suffered by our companies and our workers. We are pleased the United Steelworkers of America is joining our companies as a co-petitioner in these cases," said Grant.
In addition to Trent Tube and the United Steelworkers of America, the cases were filed by Avesta Sandvik Tube, Inc., Schaumburg, Ill.; Bristol Metals, Bristol, Tenn.; and Damascus Tubular Products, Greenville, Pa.
The petition charges that Korean and Taiwanese manufacturers have been selling welded stainless steel pipe in the United States at significant dumping margins. In some instances, the margins exceed 20 percent for Korean and 25 percent for Taiwanese producers. Said Grant, "These numbers demonstrate the considerable extent to which dumping is occurring in the U.S. marketplace."
In 1988, the domestic industry first began to experience the negative effects of large volumes of low-priced imports from Korea and Taiwan. Since that time, it has suffered substantial declines in production, capacity utilization, shipments, employment and wages, all factors traditionally examined by the U.S. International Trade Commission in an injury investigation.
The industry's predicament, however, is most clearly exhibited by the steep declines in sales and net operating profit from a respectable 11.89 percent in 1988 to a marginal 2.14 percent through the first nine months of 1991. Pipe manufacturers estimate that net income will be even lower during the last quarter of 1991.
The dumping charges will be investigated by the Department of Commerce. The International Trade Commission has 45 days to determine preliminarily whether there is a reasonable indication of material injury or threat of material injury to the domestic industry.
"The industry is anticipating the end of the Voluntary Restraint Agreements (VRA) program in filing these cases," said David A. Hartquist, a partner in the Washington law firm ?Collier, Shannon & Scott, which is counsel to the petitioners. "The VRAs are set to expire on March 31, 1992, but the Korean agreement was not much help, and the Taiwanese simply refused to enter into a VRA. With the huge production capacity available in both Korea and Taiwan, and their obvious targeting of our market at dumped prices, we felt we had to move now by filing these long-rumored cases," Hartquist said.
The Specialty Tubing Group is a coalition of stainless steel pipe and tubing manufacturers and supplier companies. Its members include Allegheny Ludlum Corporation, Pittsburgh; Armco Advanced Materials Corporation, Butler, Pa.; Associated Tube Industries, Markham, Ontario, Canada; Avesta Stainless Inc., Schaumburg, Ill.; Bristol Metals, Inc., Bristol, Tenn.; Carpenter Technology, Reading, Pa.; Trent Tube Division, Crucible Materials Corporation, East Troy, Wis.; Damascus Tubular Products, Greenville, Pa.; Eastern Stainless Corporation (a division of Cyclops Corporation), Baltimore; J&L Specialty Products Corporation, Pittsburgh; Synalloy Corporation, Spartanburg, S.C.; and Washington Steel Corporation, Washington, Pa.
/CONTACT: Meg Mullery of Georgetown Communication Services, 202-342-8465, for the Specialty Tubing Group/ CO: Specialty Tubing Group ST: District of Columbia IN: MNG SU: DC -- DC032 -- 4672 11/18/91 17:37 EST