AK Steel Files Trade Cases On Non-Oriented Electrical Steel
WEST CHESTER, Ohio, Sept. 30, 2013
WEST CHESTER, Ohio, Sept. 30, 2013 /PRNewswire/ --AK Steel (NYSE: AKS) said
today that is has filed antidumping duty petitions charging that unfairly
low-priced imports of non-oriented electrical steel ("NOES") from six
countries are causing material injury to the company.
AK Steel also filed countervailing duty petitions alleging that NOES producers
in China, Korea and Taiwan have been heavily subsidized by their respective
governments. The petitions were filed with the U. S. Department of Commerce
("Commerce Department") and the U. S. International Trade Commission ("ITC").
The dumping margins alleged against the six countries are as follows:
Country Dumping Margins Alleged
China 238 to 397 percent
Germany 70 to 87 percent
Japan 88 to 221 percent
Korea 6 to 71 percent
Sweden 62 to 125 percent
Taiwan 51 to 106 percent
Imports from the six targeted countries accounted for 92 percent of U.S.
imports of NOES from all countries in 2012. The petitions allege that these
imports have had an adverse impact on AK Steel's NOES operations and on AK
Steel's workforce. Foreign producers in the targeted countries have massive
and growing capacity to produce NOES, and they have been dumping their excess
capacity into a grossly oversupplied U.S. market. This has adversely affected
U.S. market prices for NOES and has resulted in lower production and profits.
"At AK Steel, we can compete with any steelmaker, anywhere, anytime; however,
we cannot, and should not, have to compete with unfairly low-priced imports
and foreign governments, which is what we are doing today," said James L.
Wainscott, Chairman, President and CEO of AK Steel. "We will continue to use
every tool at our disposal to help remedy the situation in order to maintain
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 offset unfair subsidies that are provided by foreign
The ITC, an independent agency, will determine whether the U.S. industry
producing NOES is materially injured, or threatened with material injury, by
reason of the dumped and subsidized imports.
The Commerce Department will determine whether to initiate the antidumping and
countervailing duty investigations within 20 days, and the ITC will reach a
preliminary determination of material injury or threat of material injury
within 45 days. The entire investigation will take approximately one year,
with final determinations of dumping, subsidization and injury to be made in
the fall of 2014. Preliminary duties, however, may be imposed during the
first quarter of 2014 and remain in effect until final determinations are
NOES is an alloy steel that contains by weight at least 1.25 percent but less
than 3.5 percent of silicon and not more than 0.08 percent of carbon or 1.5
percent of aluminum. The petitions cover NOES whether or not in coils,
regardless of width, and having a thickness of 0.20 mm or more. NOES is
manufactured using a specialized rolling and annealing process. It has a core
loss that is substantially equal in any direction of magnetization in the
plane of the material. Based on these unique product characteristics, NOES is
used primarily in the production of motors and generators.
AK Steel is represented in these actions by Joe Dorn and Steve Jones of the
law firm King & Spalding LLP.
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.
AK Steel produces flat-rolled carbon, stainless and electrical steels,
primarily for automotive, infrastructure and manufacturing, construction and
electrical power generation and distribution markets. The company employs
about 6,100 men and women in Middletown, Mansfield, Coshocton and Zanesville,
Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its
corporate headquarters in West Chester, Ohio. Additional information about AK
Steel is available on the company's web site at www.aksteel.com.
AK Tube LLC, a wholly-owned subsidiary of AK Steel, employs about 300 men and
women in plants in Walbridge, Ohio and Columbus, Indiana. AK Tube produces
carbon and stainless electric resistance welded (ERW) tubular steel products
for truck, automotive and other markets. Additional information about AK Tube
LLC is available on its web site at www.aktube.com.
AK Coal Resources, Inc., another wholly-owned subsidiary of AK Steel, controls
and is developing metallurgical coal reserves in Somerset County,
Pennsylvania. AK Steel also owns 49.9% of Magnetation LLC, a joint venture
headquartered in Grand Rapids, Minnesota, which produces iron ore concentrate
from previously mined ore reserves.
SOURCE AK Steel
Contact: Media - Michael P. Wallner, General Manager, Communications and PR,
(513) 425-2688; Investors - Roger K. Newport, Vice President, Finance and
Chief Financial Officer, (513) 425-5270
Press spacebar to pause and continue. Press esc to stop.