U.S. Producers Of Grain-Oriented Electrical Steel Applaud International Trade Commission Finding Of Injury By Foreign Producers

U.S. Producers Of Grain-Oriented Electrical Steel Applaud International Trade
 Commission Finding Of Injury By Foreign Producers To American Manufacturers
                  And Workers, Says Kelley Drye & Warren LLP

PR Newswire

WASHINGTON, Nov. 19, 2013

WASHINGTON, Nov.19, 2013 /PRNewswire-USNewswire/ --The U.S. International
Trade Commission (ITC) made a unanimous (6-0) preliminary determination today
that foreign producers of grain-oriented electrical steel (GOES) are causing
injury to the two U.S. producers of GOES and their workers. The preliminary
injury determination means that the case against producers in seven countries
will proceed.

AK Steel Corporation (NYSE:AKS) and ATI Allegheny Ludlum, an Allegheny
Technology company (NYSE:ATI), along with the United Steelworkers ("USW"), a
union representing workers engaged in the production of GOES at Allegheny
Ludlum, filed petitions on September18 charging that unfairly traded imports
of GOES from China, the Czech Republic, Germany, Japan, Poland, Russia and
South Korea were causing material injury to the domestic injury. Antidumping
cases were filed against all seven countries, in addition to a countervailing
duty case against China alleging government subsidization of Chinese
producers.

The case now moves to the United States Department of Commerce ("Commerce
Department") for determinations as to whether the foreign producers are
violating U.S. antidumping law by selling their products at less than fair
value in the United States, and U.S. countervailing duty law covering
government subsidies. The Commerce Department will calculate antidumping
margins, which are designed to offset the amount by which the product is sold
at less than fair value. Estimated antidumping duties will be collected from
importers as of the date of the Commerce Department's preliminary
determination, which will occur on March13, 2014. If foreign producers
attempt to "beat the clock" by making massive shipments into the U.S. market
before the Commerce Department's preliminary determination, antidumping duties
can be imposed retroactively beginning 90 days prior to the preliminary
determination. The preliminary determination in the Chinese subsidy case will
be made by Commerce on December30, 2013.

JamesL. Wainscott, Chairman, President and Chief Executive Officer of AK
Steel Corporation stated, "We are very pleased that the ITC has made this
favorable determination. We expect all of our competitors to operate
according to the rules of fair trade, and this is a key step in moving the
case forward."

RichardJ. Harshman, Chairman, President and Chief Executive Officer of
Allegheny Technologies Incorporated, parent company of ATI Allegheny Ludlum,
stated, "The ITC's determination today confirms our belief that dumping and
foreign government subsidization are violating U.S. laws and WTO rules. We
look forward to the next step in this important case and to restoration of
fair competition in the U.S. market for grain-oriented electrical steel."

LeoW. Gerard, the International President of the United Steelworkers said,
"The USW is pleased that the ITC has taken this important step in the fight
against job-killing unfair trade practices as demonstrated in our petitions."

"Imports of unfairly low priced GOES from the seven countries have caused
injury to the domestic industry and its workers, and devastated pricing in the
U.S. market," said DavidA. Hartquist of Kelley Drye & Warren, LLP, attorney
for petitioners. "We appreciate the fact that the ITC has recognized this in
its preliminary injury decision. The focus now turns to the Commerce
Department, where we will be working aggressively to prove the substantial
antidumping and countervailing duty margins demonstrated in our petition. The
dumping margins range from 38.54 percent to 257.61 percent, reflecting the
amount of additional import duties which would be imposed on GOES imports from
the various countries."

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.

SOURCE Kelley Drye & Warren LLP