Whirlpool Accuses LG and Samsung of Dumping Washers -- 2nd Update
December 16 2015 - 5:37PM
Dow Jones News
By James R. Hagerty
Whirlpool Corp. is asking the U.S. government to impose duties
on washing machines made by Korean rivals Samsung Electronics Co.
and LG Electronics Inc. in China.
In a petition filed with the government on Wednesday, the Benton
Harbor, Mich.-based appliance maker alleges that the Korean
companies have grabbed a bigger share of the U.S. market by selling
washers at less than they cost to produce.
The petition from Whirlpool comes less than three years after
the U.S. Commerce Department imposed duties of about 9% to 13% on
washers made by those companies in Mexico and South Korea for
export to the U.S. Whirlpool says LG and Samsung responded to those
duties by shifting production to China, circumventing the
duties.
A Samsung spokeswoman said the company was confident U.S.
authorities would find it hadn't violated trade rules. An LG
spokesman predicted the investigation would "show that LG's washers
have not been sold unfairly in the U.S. market and have not been
causing any injury to the U.S. industry."
Whirlpool's petition covers full-size top-load and front-load
washers, along with certain washer parts, made by the Korean
companies in China. Many of those washers retail for between $500
and $1,000 in the U.S.
Using estimates of production costs, the Commerce Department
will have to rule on whether the Korean companies are dumping these
products, or selling them at unfairly low prices. Another U.S.
agency, the International Trade Commission, would determine whether
the pricing practices are injuring Whirlpool and other U.S.
manufacturers.
Whirlpool estimated in its petition that the washers made by LG
and Samsung in China accounted for 31% of the U.S. market in this
year's first nine months, up from 6% in 2012.
"Samsung and LG replaced their dumped washers from Korea and
Mexico with dumped washers from China," Whirlpool said. The company
expects the Commerce Department to make a preliminary ruling by
July.
The Korean companies, offering sleek designs and sophisticated
control panels, have gained share in both kitchen and laundry
appliances. Samsung's share of the U.S. market for major appliances
in dollar terms surged to nearly 13% in the year ended June 30 from
0.7% in 2006, according to estimates from Stevenson Co.'s TraQline
service. In the same period, LG's estimated share jumped to 13%
from 3.4%.
Whirlpool said it has 15,000 manufacturing workers at nine
plants in the U.S. The company said its plant in Clyde, Ohio, is
the world's biggest manufacturing location for washers.
In a separate case, the U.S. International Trade Commission in
2012 rejected Whirlpool's demand for tariffs on refrigerators made
by Samsung and LG. The Korean companies denied the allegation.
Write to James R. Hagerty at bob.hagerty@wsj.com
(END) Dow Jones Newswires
December 16, 2015 17:22 ET (22:22 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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