Domestic Producers Of Grain-Oriented Electrical Steel File Antidumping And Countervailing Duty Petitions Against Seven

  Domestic Producers Of Grain-Oriented Electrical Steel File Antidumping And
            Countervailing Duty Petitions Against Seven Countries

PR Newswire

WASHINGTON, Sept. 18, 2013

WASHINGTON, Sept. 18, 2013 /PRNewswire-USNewswire/ -- AK Steel Corporation and
Allegheny Ludlum, LLC d/b/a ATI Allegheny Ludlum, the two U.S. producers of
grain-oriented electrical steel ("GOES"), as well as the United Steelworkers
("USW"), which represents workers engaged in the production of GOES at ATI
Allegheny Ludlum, filed antidumping duty petitions today charging that
unfairly traded imports of GOES from seven countries are causing material
injury to the domestic industry. The domestic industry also filed a
countervailing duty petition alleging that significant subsidies have been
provided to Chinese GOES producers by the Chinese Government. The petitions
were filed concurrently with the United States Department of Commerce
("Commerce Department") and the United States International Trade Commission
("USITC"). The seven countries covered by the antidumping petitions and the
margins alleged by the domestic industry are as follows:

COUNTRY        DUMPING MARGINS ALLEGED
China          168.47 percent
Czech Republic 57.55 – 217.23 percent
Germany        49.51 – 188.59 percent
Japan          38.26 – 171.25 percent
Poland         47.81 – 94.85 percent
Russia         18.54 – 81.78 percent
South Korea    40.45 – 210.13 percent

The petitions were filed in response to large and increasing volumes of
low-priced imports of GOES from the subject countries over the past three
years that have injured U.S. GOES producers. Imports from the seven subject
countries accounted for 85 percent of all imports of GOES by value in the U.S.
market in 2012. The petitions allege that producers in the subject countries
have injured the domestic industry by selling their products at unfairly low
prices that significantly undercut domestic market prices. As a result of
this unfair competition, the domestic industry has suffered declines in
production, sales, and employment, has watched prices decline even in the face
of increased costs, and has seen its profitability evaporate. Foreign
producers in the countries covered by the petitions have massive capacity to
produce GOES, and have been exporting large and increasing volumes of unfairly
low-priced and subsidized GOES to the United States that has devastated
pricing in the U.S. market. Those price declines are likely to continue to
the detriment of competing U.S. producers if duties are not imposed to level
the playing field.

"We filed these cases seeking the restoration of fair competition in the U.S.
market for grain-oriented electrical steel. Our extensive investigations
confirmed our belief that widespread dumping is being practiced by producers
from seven countries. This violates U.S. laws and WTO rules. We respectfully
urge the U.S. Department of Commerce and the U.S. International Trade
Commission to grant speedy and effective relief to remedy the injury to our
business and to support the jobs of our employees," said Richard J. Harshman,
the Chairman, President, and Chief Executive Officer of Allegheny Technologies
Incorporated, the parent company of petitioner ATI Allegheny Ludlum.

James L. Wainscott, Chairman, President, and Chief Executive Officer of AK
Steel Corporation stated, "AK Steel expects all of its competitors to operate
according to the rules of fair trade, and is filing these cases to address the
pervasive dumping of GOES into the United States by several foreign
steelmakers. The substantial antidumping margins found in our investigations
reflect the determination of those companies to capture market share in the
United States by using tactics not permitted under U.S. and international
rules."

The United Steelworkers also supports the petitions. Leo W. Gerard, the
International President of the United Steelworkers stated, "The United
Steelworkers are pleased to join with ATI Allegheny Ludlum, whose workers the
USW represents, and AK Steel in filing these important cases. Our union has
long been in the forefront of fighting job-killing unfair trade practices like
the massive dumping demonstrated in our petitions. We hope and expect that
these cases will restore lost jobs for our members and fair competition in the
U.S. market."

"Imports of unfairly low-priced and subsidized GOES from the seven countries
covered by the petitions have devastated pricing in the U.S. market and caused
injury to the domestic industry," commented David Hartquist, of Kelley Drye &
Warren LLP, the petitioners' trade counsel. "The domestic industry looks
forward to the opportunity to present its case to the Commerce Department and
U.S. International Trade Commission to obtain relief from unfairly traded
imports of GOES."

Antidumping duties are intended to offset the amount by which a product is
sold at less than fair value, or "dumped," in the United States. The margin
of dumping is calculated by the Commerce Department. Estimated duties in the
amount of the dumping are collected from importers at the time of
importation. Countervailing duties are intended to offset unfair subsidies
that are provided by foreign governments and benefit the production of a
particular good. The USITC, an independent agency, will determine whether
such imports are a cause of, or threaten, material injury to the domestic
industry.

As a result of the filing of the petitions, the Commerce Department will
determine whether to initiate the antidumping and countervailing duty
investigations within 20 days and the USITC will reach a preliminary
determination of material injury or threat of material injury within 45 days.
The entire investigative process will take approximately one year, with final
determinations of dumping, subsidization, and injury likely occurring in the
fall of 2014.

GOES is an alloy steel that contains by weight at least 0.6 percent of silicon
and not more than 0.08 percent of carbon, and may also contain not more than 1
percent of aluminum by weight. The petitions cover GOES that is sold in
either sheet or strip form, in coils or in straight lengths. GOES is
manufactured using a specialized rolling and annealing process that yields
grain structures uniformly oriented in the rolling (or lengthwise) direction
of the sheet, enabling it to conduct a magnetic field with a high degree of
efficiency. Based on these unique product characteristics, GOES is used
primarily in the production of laminated cores for large and medium-sized
electrical power transformers and distribution transformers.

The petitioners are represented in these actions by David A. Hartquist and
John M. Herrmann of the law firm Kelley Drye & Warren LLP.

Forward-Looking Statements of AK Steel

Some of the statements in this release are intended to be, and hereby are
identified as "forward-looking statements" for purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. AK Steel
cautions readers that such forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those
currently expected by its management, including those risks and uncertainties
discussed in AK Steel Holding Corporation's Annual Report on Form 10-K for the
year ended December 31, 2012, its subsequently filed Quarterly Reports on Form
10-Q and Current Reports on Form 8-K filed with or furnished to the Securities
and Exchange Commission. Except as required by law, AK Steel disclaims any
obligation to update any forward looking statements to reflect future
developments or events.

Forward-Looking Statements of ATI Allegheny Ludlum

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on management's current expectations and include known
and unknown risks, uncertainties and other factors, many of which we are
unable to predict or control, that may cause our actual results, performance
or achievements to materially differ from those expressed or implied in the
forward-looking statements. Additional information concerning factors that
could cause actual results to differ materially from those projected in the
forward-looking statements is contained in Allegheny Technologies
Incorporated's filings with the Securities and Exchange Commission. We assume
no duty to update our forward-looking statements.

SOURCE Kelley Drye & Warren LLP
 
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