BENTON HARBOR, Mich.,
May 31, 2017 /PRNewswire/
-- Today Whirlpool Corporation is filing a safeguard petition
with the U.S. International Trade Commission as the company's next
step in addressing the ongoing efforts of Samsung and LG to evade
U.S. trade laws. A safeguard action provides an effective remedy
for serious injury to U.S. manufacturers of large residential
washers caused by surging imports. The U.S. Government has twice
found these imports were unlawfully dumped by Samsung and LG.
Today's filing follows antidumping cases against Samsung and LG
in which the U.S. Government determined that these companies
injured U.S. washer manufacturers by selling imported washing
machines in the United States at
illegally dumped prices. Samsung and LG responded to these prior
rulings by relocating their production facilities to other foreign
countries in order to circumvent the U.S. Government's rulings.
"This filing addresses unprecedented behavior by two serial
violators of U.S. trade laws," said Jeff M.
Fettig, chairman and chief executive officer of Whirlpool
Corp. "If not for this unlawful behavior, we believe our washer
category would have thrived like the rest of our North American
business. Whirlpool, along with our Clyde employees, is taking this action because
U.S. manufacturers and workers need comprehensive trade relief that
Samsung and LG cannot circumvent. The safeguard petition allows for
the effective application and enforcement of trade rules that are
critical to maintaining jobs and supporting free and fair
competition in the United
States."
More than 2,000 employees from Whirlpool Corp.'s washer
manufacturing facility in Clyde,
Ohio, signed on to the formal petition to emphasize the
importance of enforcing trade laws to preserve U.S. manufacturing
jobs.
A safeguard petition is the only effective means available to
the U.S. Government to address a pattern of cheating through
country hopping. In contrast to the country-specific antidumping
remedy that the U.S. Government applied to Samsung and LG in
South Korea, Mexico and China, a safeguard remedy addresses imports
from Samsung and LG – regardless of their country-hopping behavior
– that cause injury to U.S. washer manufacturers. Whirlpool Corp.
is filing this petition to ensure fair competition and to enable
U.S. manufacturers to continue creating jobs, investing in new
facilities and funding research that drives innovation to benefit
consumers.
Samsung's and LG's cheating by country hopping to avoid U.S.
trade remedies:
- In 2013, the U.S. Government found that Samsung and LG were
unlawfully dumping South Korean and Mexican washers into
the United States.
- The two companies responded by moving washer production to
China to continue their illegal
dumping behavior.
- Earlier this year, the U.S. Government issued a new antidumping
order against Samsung and LG in China. But several months before the
government issued its ruling, Samsung and LG stockpiled product in
the United States and again moved
their washer production – this time to factories in Vietnam and Thailand – in order to do another end run
around the U.S. trade laws and continue their injurious
behavior.
The following is the expected timeline for this safeguard
petition:
Late September 2017: The
International Trade Commission votes to determine whether increased
washer imports have been (or threaten to be) a substantial cause of
serious injury to the U.S. washer industry.
Late November 2017: If the ITC
reaches an affirmative determination, it recommends measures to the
U.S. president to remedy the injury.
Year-end 2017: Following review of the ITC's recommendations, if
the ITC made an affirmative determination, the president could
issue a remedy determination.
To learn more about Whirlpool Corp.'s U.S. investments, its
commitment to free and fair trade, and prior trade cases, visit
WhirlpoolCorp.com/fair-trade. The company intends to disclose
important information related to the safeguard action from time to
time on this website.
About Whirlpool Corporation
Whirlpool Corp. (NYSE:
WHR) is the number one major appliance manufacturer in the world,
with approximately $21 billion in
annual sales, 93,000 employees and 70 manufacturing and technology
research centers in 2016. The company markets Whirlpool,
KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air,
Indesit and other major names in nearly every country
throughout the world. Additional information about the company can
be found at WhirlpoolCorp.com, or find us on Twitter
@WhirlpoolCorp.
Whirlpool Corp. in the United
States
More than 80 percent of the products sold by
Whirlpool Corp. in the United
States are assembled in the United
States. The company's Clyde,
Ohio, washing machine manufacturing facility not only meets
America's washer needs, but also exports 10 percent of its washer
production for families throughout the world. The company's total
investments in Clyde exceed
$1 billion, and the company's washer
business supports approximately 800 U.S. suppliers. There are
approximately 25,000 workers at Whirlpool Corp. in the United States, with 15,000 of those jobs
being held by manufacturing workers in its nine U.S. production
plants.
Whirlpool Corp. Additional Information
Certain
statements in this press release relating to the safeguard petition
and the expected timing for resolution and benefits to the company
constitute "forward-looking statements" within the meaning of the
federal securities laws. These statements reflect management's
current expectations regarding future events and speak only as of
the date of this press release. Forward-looking statements involve
significant risks and uncertainties, should not be read as
guarantees of future performance and will not necessarily be
accurate indications of whether or not, or the times at or by
which, events will occur. Actual performance may differ materially
from that expressed or implied in such statements. Important
factors that could cause actual results to differ materially from
these expectations include, among other things, the risk that the
timing for resolution of these matters may be significantly
delayed, that our petition may not be successful, and that we may
not realize expected benefits following resolution of our petition.
In addition to these risks, reference should also be made to the
factors discussed under "Risk Factors" in Whirlpool Corporation's
periodic filings with the Securities and Exchange Commission.
Although the forward-looking statements contained in this press
release are based upon what are believed to be reasonable
assumptions, investors cannot be assured that actual results will
be consistent with these forward-looking statements, and the
differences may be material. These forward-looking statements are
made as of the date of this press release and, except as expressly
required by applicable law, Whirlpool Corporation assumes no
obligation to update or revise them to reflect new events or
circumstances.
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SOURCE Whirlpool Corporation