I want to thank everyone who attended our breakout session
about the rising threat from imported aluminum extrusions. In that session we examined the data in this
matter. There has been clear growth in
imports from a variety of countries. In recent years we’ve seen higher market
penetration from Vietnam and Malaysia, but now, we see the threat from the
Caribbean and other Southeast Asian countries.
As discussed in the meeting, the AEC’s law firm in our China case, Wiley
Rein, is collecting data from AEC members in order to track these imports and
the impacts on our businesses and industry.
If you’d like to participate in this data collection, please contact me
for details.
While I can’t comment in this forum on about our next steps,
let me assure you that we are acting.
Imports from the Dominican Republic are particularly worrisome. The Chinese owned and operated facility in
that country appear to signal a new tactic by the Chinese industry. By investing in third party countries to
establish a base to export into the U.S. market, they position themselves the
circumvent U.S. trade orders or simply expand their predatory pricing to
another nation. We do have options, and
the best available course of action will be undertaken.
This formula has been seen in several Southeast Asian
countries. Chinese operations have
sprung up in several countries. We will
continue to monitor this activity. As
always, your feedback from the field is very helpful in helping us get to the
story behind the data. So, keep those
reports coming.
One thing we have learned, and its something we discussed at
our conference, the Chinese will hit us the hardest when the global economy
weakens. Furthermore, they know one way
to circumvent our orders is to start exporting more value-added aluminum
extrusions and sub-assemblies with extrusions.
This is where the breadth of our scope language will help protect
us. So, we should expect another round
of scope challenges as this occurs in order to protect our value-added
business. Whether the threat comes from
straight transshipment, third country Chinese-backed extruders, or attempts to
move downstream, we must hang together and get prepared for another critical
fight!
Elsewhere in our case, we are preparing our response to the
Reflections curtain wall scope challenge.
This is a key application for extruders, and one we must fight
hard. I will keep you posted on our progress. I have a feeling this could be a long fight.
Our Administrative Review is underway. Currently, we are preparing our comments and
preferences concerning which Chinese companies will be reviewed by the
Department of Commerce. This is a key
step in the process. We will make that
filing later this month. It is our
ambition to maintain or increase our existing duty rates of 86% for the
Anti-Dumping Case and 20% for the Countervailing Duty Case. These levels have been very effective in keep
Chinese imports below 1%.
Coming out of conference last month it is important for all AEC
member companies to understand the fight that we face in the coming years. Our orders are up for review in two
years. That means in about 18 months we
will be collecting data and absorbing legal bills that will run two times our
normal budget. So, we must keep our
membership in tact so we can prevail in our Sunset Review and be fully prepared
to address these new tactics from a very hungry Chinese aluminum extrusion
industry!
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