U.S. Grain-Oriented Electrical Steel Industry Encouraged By Commerce Department's Affirmative Preliminary Determinations In Ant

     U.S. Grain-Oriented Electrical Steel Industry Encouraged By Commerce
      Department's Affirmative Preliminary Determinations In Antidumping
                                Investigations

PR Newswire

WASHINGTON, May 5, 2014

WASHINGTON, May 5, 2014 /PRNewswire-USNewswire/ -- The U.S. Department of
Commerce today announced its preliminary determinations that imports of
grain-oriented electrical steel ("GOES") from China, the Czech Republic,
Germany, Japan, Poland, Russia, and South Koreaare being sold at less than
fair value (or "dumped") in the United States. As a result, the Commerce
Department will instruct U.S. Customs and Border Protection ("CBP") to begin
requiring U.S. importers of GOES from these seven countries to deposit
estimated antidumping duties at the time of importation as follows:

Country        Dumping Margins
China          159.21 percent
Czech Republic 10.35 – 11.45 percent
Germany        133.70 – 241.91 percent
Japan          93.36 – 172.30 percent
Poland         78.10 – 99.51 percent
Russia         68.98 – 119.88 percent
South Korea    5.34 percent

The Commerce Department also reached affirmative preliminary critical
circumstances findings with respect to Poland and Russia.

The Commerce Department's determinations follow the filing, on September 18,
2013, of antidumping and countervailing duty petitions by domestic GOES
producers AK Steel Corporation (NYSE: AKS) and Allegheny Ludlum, LLC d/b/a ATI
Flat Rolled Products, an Allegheny Technologies company (NYSE: ATI), as well
as the United Steelworkers ("USW"), which represents workers engaged in the
production of GOES at ATI Flat Rolled Products. The International Union,
United Automobile, Aerospace and Agricultural Implement Workers of America
("UAW"), which represents workers engaged in the production of GOES at AK
Steel Corporation, subsequently expressed its support for the petitions. On
March 5, 2014, the Commerce Department announced its preliminary determination
that imports of GOES from China benefit from subsidies bestowed by the
Government of China, resulting in a preliminary countervailing duty margin of
49.15 percent of the value of the imported steel.

Richard J. Harshman, Chairman, President and Chief Executive Officer of ATI,
said, "We are pleased that these cases have taken another major step forward.
GOES is essential to the integrity and efficiency of the U.S. electrical
energy distribution grid. The findings by the Department of Commerce support
our belief that the respondent foreign producers have been violating US trade
laws and WTO rules with their commercial practices."

"AK Steel applauds the Commerce Department's preliminary ruling that imports
of grain-oriented electrical steel are being dumped into the United States,"
said James L. Wainscott, Chairman, President and CEO of AK Steel. "These
determinations are an important step in ensuring that our foreign competitors
play by the rules of fair trade."

Leo W. Gerard, International President of the United Steelworkers, commented,
"The USW appreciates the decision by the Commerce Department which ultimately
will help save the hundreds of family supportive jobs in this important
American industry."

David A. Hartquist, of Kelley, Drye & Warren LLP, counsel to the domestic
industry, stated, "We are very pleased with the Commerce Department's
affirmative preliminary determination that producers of grain-oriented
electrical steel in China, the Czech Republic, Germany, Japan, Poland, Russia,
and South Korea are selling their merchandise in the United States at
significant dumping margins. The U.S. grain-oriented electrical steel
industry has suffered lost sales and reduced profitability due to unfairly
traded imports from these countries, and relief is needed to counteract the
significant injury that is being caused by the unfairly traded imports."

The next step in the trade action will be the Commerce Department's
verification of factual information submitted by producers in the Czech
Republic and South Korea. There will then be an opportunity for parties to
submit case and rebuttal briefs to the Commerce Department and to participate
in a hearing. Following these events, the Commerce Department will issue its
final antidumping and countervailing determinations. The current deadline for
the announcement of these final determinations is July 16, 2014.

GOES is a flat-rolled alloy steel product that contains by weight at least 0.6
percent but not more than 6 percent of silicon, not more than 0.08 percent of
carbon, and not more than 1 percent of aluminum. 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

Contact: David A. Hartquist, Esq. 202.342.8540, dhartquist@kelleydrye.com;
John M. Herrmann, Esq. 202.342.8488, jherrmann@kelleydrye.com
 
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