NEWS RELEASES - 1999

FOR IMMEDIATE RELEASE:
March 29, 1999

(Washington, DC) - Taiwanese producer Ta Chen Stainless Pipe Co., Ltd. engaged in middleman dumping of stainless steel plate in coils, according to last week's announcement by the U.S. Department of Commerce. Middleman dumping arises when a trading company resells a substantial volume of a foreign producer's product in the United States at substantially below the trading company's total acquisition costs.

On March 22, the Department of Commerce announced that final antidumping duties of 10% were assigned to Ta Chen on its resales in the United States of stainless steel plate in coils made by Taiwanese producer Yieh United Steel Corporation. Separately, Yieh United was assigned a final antidumping duty of 8%; all other Taiwanese producers and exporters were assigned a 7% duty.

Dr. Jack W. Shilling, President of ATI Allegheny Ludlum in Pittsburgh, PA, one of the five U.S. companies that filed the unfair trade case last year against Taiwan and five other nations, commented, "We are extremely pleased with this confirmation by the Commerce Department of our long-held belief that Ta Chen and Yieh United have been dumping stainless steel coiled plate in the United States. Particularly noteworthy is the fact that significant middleman dumping by Ta Chen has been found. We anticipate that this important precedent will also apply to the stainless sheet and strip decision in May."

According to the Commerce Department, 45% of Ta Chen's resales of stainless coiled plate to the United States were at prices below Ta Chen's total acquisition costs from Yieh United. In determining dumping, the Commerce Department typically focuses on the foreign producer's price to the middleman. In taking into account both Yieh United's sales and Ta Chen's resales in the coiled plate case, the Commerce Department emphasized that it unquestionably has the authority to depart from its normal practice when circumstances warrant and investigate whether dumping is being understated or masked by middlemen. Commerce's decision resulted from a yearlong investigation of both companies, including a detailed review of their books and records. The Commerce Department is currently investigating similar issues in the stainless sheet and strip antidumping case against Taiwan.

David A. Hartquist of the Washington, D.C. law firm of Collier, Shannon, Rill & Scott, pllc, who serves as lead counsel to the petitioners, further noted the importance of the Commerce Department's actions with respect to Ta Chen. "This finding of middleman dumping by Ta Chen is an important legal precedent that puts foreign producers and middlemen traders everywhere on notice that the Commerce Department will not tolerate such blatant tactics to avoid U.S. laws," he said.

In addition to Allegheny Ludlum, the petitioners in the unfair trade case are Armco Inc., J&L Specialty Steel, Inc., located in Pittsburgh, PA; Lukens, Inc., Coatesville, PA; and North American Stainless, Ghent, KY. The United Steelworkers of America and two independent unions joined as petitioners.

The petitioners are members of the Specialty Steel Industry of North America (SSINA), a Washington, D.C.-based trade association representing continental producers of stainless steel and alloy tool steels, electrical steels, super alloys, and other high technology metals.