U.S. Department of Commerce Imposes Duties on Chinese Producers of Circular Welded...

U.S. Department of Commerce Imposes Duties on Chinese Producers of Circular Welded Pipe for Dumping Below-Cost Product in the United States

In November 2007, Commerce Said that China Illegally Subsidized
Same Products
WASHINGTON--(Business Wire)--Six U.S. pipe makers and the United Steelworkers (USW) today
applauded the U.S. Department of Commerce for its preliminary finding
that Chinese producers of circular welded pipe are dumping below-cost
product in the United States. The Commerce Department will impose
antidumping duties on China pipe exports at an average rate of 25.67
percent. Individual company margins range from zero to 51.34 percent.
These antidumping duties are in addition to the antisubsidy duties
imposed by the Commerce Department on November 6, 2007, when it was
determined that the government of China was illegally subsidizing
Chinese pipe makers. Circular welded steel pipe products, known as
standard and structural pipe, are used in plumbing applications, HVAC
systems, sprinkler systems, fencing, and construction.

The pipe imports subject to the petition against China have surged
from 10,000 tons in 2002 to more than 750,000 tons in 2007 -- a 6,900
percent increase. The result has been the loss of 500 American jobs,
approximately 25 percent of the total workforce employed in this
segment of the domestic pipe industry.

Once the new tariffs are published in the Federal Register,
typically within five days, importers will be required to post bonds
in the amount of the dumping margins calculated by the Department. The
Department of Commerce has also applied critical circumstances,
determining that this duty could be applied retroactively by 90 days.

The trade suit, filed in parallel with the International Trade
Commission (ITC) and the Department of Commerce on June 7, 2007, was
brought by the Ad Hoc Coalition for Fair Pipe Imports From China and
the United Steelworkers. The Ad Hoc Coalition includes Allied Tube &
Conduit, IPSCO Tubulars, Inc., Northwest Pipe Company, Sharon Tube
Company, Western Tube & Conduit Corporation, and Wheatland Tube
Company. On July 20, 2007, the ITC made a finding that circular welded
pipe from China is causing material injury to the U.S. industry.

Armand Lauzon, Chief Executive Officer of John Maneely Company
(parent company of Wheatland Tube and Sharon Tube), said, "This
important decision sends a strong message to Chinese producers that
they cannot dump their excess production in our market. This has cost
the industry both jobs and revenue, and we hope these provisional
duties will put a stop to that."

Rick Filetti, President of Allied Tube & Conduit, stated, "Surging
imports from China at prices below our raw material costs have had a
significant adverse impact on our employees and on our company's
profitability. Dumping erodes both market share and pricing of U.S.
producers who have done much to increase their own competitiveness
over the past three years, but who cannot compete with dumped and
subsidized product from China."

Leo W. Gerard, USW President, declared, "This is an important
decision today for domestic pipe and steel workers. We have seen
significant layoffs in the pipe and tube industry as a result of
skyrocketing China imports. Chinese producers sell at prices that
vastly undercut U.S. companies meaning lost sales, lost jobs, and
closed facilities. The ripple effects are enormous, as thousands of
steel jobs have also been lost in the mills that supply steel to the
pipe and tube producers, particularly in the Ohio Valley."

Gilbert B. Kaplan, a partner at King & Spalding, one of the law
firms representing the pipe makers, said, "We are gratified that the
Department of Commerce recognized the significant unfair trade
practices engaged in my the Chinese pipe producers. These duties
should have an important effect on the strength of the United States
pipe industry." Roger Schagrin, of Schagrin Associates, also
representing the petitioners, added, "This is an important day for the
U.S. pipe industry and its workers, which until now has been forced to
compete against dumped imports. Today's decision is an important first
step in the process of obtaining trade relief against unfairly traded
imports from China."

After the Department of Commerce makes final determinations in
both the antisubsidy duty and antidumping duty investigations, the
U.S. International Trade Commission is scheduled to complete its final
investigation in the spring of 2008.

-0-
*T
Current Estimated Timeline for the Investigation

Case Filed June 7, 2007
Commerce Preliminary Subsidy Decision November 6, 2007
Commerce Preliminary Dumping Decision January 4, 2008
Commerce Final Subsidy and Dumping Decision March 18, 2008
ITC Final Injury Determination Spring 2008
*T

John Maneely Co.
Armand Lauzon, 216-910-3702
or
Allied Tube & Conduit
Rick Filetti, 708-339-1610
or
King & Spalding LLP
Gil Kaplan, 202-661-7981
or
Schagrin Associates
Roger Schagrin, 202-223-1700
or
USW
Gary Hubbard, 202-256-8125

Copyright Business Wire 2008