WASHINGTON, Feb. 9, 2016 /PRNewswire-USNewswire/ -- Today's
unanimous affirmative vote by the U.S. International Trade
Commission (ITC) on the petitions brought at both the ITC and the
U.S. Department of Commerce (Commerce) on Jan. 21, 2015, by the United Steelworkers (USW)
and four U.S. paper manufacturers brings much needed relief to the
industry. The four manufacturers are Packaging Corporation of
America (PCA), Domtar Corporation, Finch Paper LLC, and P.H.
Glatfelter Company.
The ITC has found that dumped, unfairly priced imports of
certain types of uncoated paper in sheets from China, Indonesia, Brazil, Portugal and Australia are causing material injury. They
also found that during that same time, illegally subsidized imports
from China and Indonesia were also causing material
injury.
During the period of these investigations, eight U.S. mills that
produce uncoated paper were forced to close. They had been faced
with a dramatic increase in unfairly traded imports which resulted
in the loss of thousands of paper jobs. Unfairly priced imports
from the five countries named in the petitions were decimating U.S.
producers and workers. The effort to stop the dumping and subsidies
was supported by dozens of Congressional and state officials from
both parties.
Dumping occurs when a product is sold in the United States at a price below what it
costs to produce or what it is sold for in the home country.
Countervailing duties are imposed on imports that are subsidized by
foreign governments.
Last month, Commerce determined dumping margins ranging up to
222.46 percent against the five countries and subsidy rates of up
to 176.75 percent against China
and Indonesia.
The petitions had asked the ITC and Commerce, the agencies
responsible for investigating illegal trade practices, to impose
duties to offset the dumping from all five countries and to offset
the subsidies on imports from China and Indonesia. The duties identified by
Commerce will be applied as of the date the antidumping and
countervailing duty orders are published in the Federal
Register.
The petitions covered all uncoated paper in sheets (including
cut-size and folio), weighing between 40 and 150 gsm, and having a
GE brightness level of 85 or higher, typically used in copy
machines and sheet-fed printers.
"Predatory trade practices by China and other countries have targeted the
U.S. paper sector," said USW International Vice President
Jon Geenen. "The results have been
devastating for our members and their families and communities.
America's paper sector is competitive when the rules are fair and
when they're enforced. Today's decision will help stabilize and,
hopefully, regain production."
Mark Kowlzan, Chief Executive
Officer of Packaging Corporation of America, stated: "Today's
decision will help restore fair market conditions for this product.
From day one we knew that the law was on our side, that the facts
were clear and that our petitions were necessary to restore fair
competition. We only wanted for international trade rules to be
enforced. We make great products and deserve the right to compete.
That's exactly what this case will do."
"This decision shows that our continuing investments in our
plants and our people have put us on the right course," said
John D. Williams, President and
Chief Executive Officer of Domtar. With the fair market conditions
in uncoated paper that result from this case, we will be able to
continue to compete and provide our customers with high quality
products. We're pleased that the law worked as it was designed and
we can focus our attention on the future."
"Trade cases are all too often a necessary tool to ensure fair
competition," said USW International President Leo W. Gerard. "Our members should not have to
face unfair and predatory trade practices. Their government should
be initiating action but if they do not, we must."
Gerard continued, "In partnership with the four petitioning
companies and supported by dozens of elected officials from across
the country, we made clear that we would not cede our market to
unfair competition. The paper sector supports thousands of
good, family-supportive jobs all across the country and we owe it
to the workers to ensure that when they work hard and play by the
rules, they'll have a good shot at a decent life."
About the United Steelworkers (USW)
The USW represents 850,000 workers in North America employed in many industries that
include metals, rubber, chemicals, paper, oil refining and the
service and public sectors. For more information:
http://www.usw.org
About Packaging Corporation of America
(PCA)
PCA is the fourth largest producer of containerboard and
corrugated packaging products in the
United States and the third largest producer of uncoated
freesheet paper in North America.
PCA operates eight paper mills and 100 corrugated products plants
and related facilities. For more, visit www.packagingcorp.com
About Domtar Corporation
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures,
markets and distributes a wide variety of fiber-based products
including communication papers, specialty and packaging papers and
absorbent hygiene products. The Company employs approximately
10,000 people. To learn more, visit www.domtar.com
About Finch Paper LLC
Finch Paper LLC is a leading, privately-owned and vertically
integrated paper manufacturer specializing in high-bright, uncoated
papers for North American printing and converting markets. Using
advanced manufacturing systems, Finch produces a broad portfolio of
opaque, text and cover and digital papers for multi-press
environments, including recognized brands such as Finch FineĀ®,
Finch Opaque, Finch ThruPut Wove and Finch Inkjet Pi.
Finch Paper was the first integrated paper manufacturer in
the United States to receive both
the Forest Management and Chain-of-Custody certifications from the
Forest Stewardship CouncilĀ® and Sustainable Forestry InitiativeĀ®.
Finch is one of only a few paper companies that continues to manage
forests. Finch papers are made using two-thirds renewable energy
produced by on-site hydroelectric and cogeneration facilities and
has been a responsible, sustainable New
York State manufacturer for more than a century. To learn
more, visit www.finchpaper.com
About P.H. Glatfelter Company
Glatfelter is a global supplier of specialty papers and
fiber-based engineered materials, offering innovation, technical
expertise, and world-class service. Headquartered in York, Pennsylvania, U.S. operations include
facilities in Spring Grove,
Pennsylvania, and Chillicothe and Fremont, Ohio. International operations
include facilities in Canada,
Germany, France, the United
Kingdom and the
Philippines, and sales and distribution offices in
Russia and China. Glatfelter's sales approximate
$1.8 billion annually and its common
stock is traded on the New York Stock Exchange under the ticker
symbol GLT. Additional information may be found at
www.glatfelter.com
CONTACT: Wayne Ranick
(412) 562-2444
wranick@usw.org
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SOURCE United Steelworkers (USW)