NEWS RELEASES - 1999

(Washington, D.C.) - The U.S. International Trade Commission (ITC) today voted unanimously (6 - 0) that U.S. producers of stainless steel plate in coils have been "materially injured" by dumped and subsidized imports from Belgium, Canada, Italy, South Africa, South Korea and Taiwan.

James F. Will, Chairman of the Specialty Steel Industry of North America (SSINA) and Chairman, President and CEO of Armco Inc., Pittsburgh PA, said that the vote was the final step necessary to impose stiff antidumping and countervailing duties on stainless steel plate in coil imports from the six countries. "The ITC ruling confirms our belief that the illegal U.S. pricing practices of the named foreign producers have injured the industry. We look forward to the issuance of the antidumping and countervailing duty orders and an end to the price turmoil that has jeopardized the long-term viability of our industry and workers," Will said.

Antidumping orders must be issued by the Department of Commerce by May 10, 1999. Once orders are issued, the U.S. Customs Service can begin collection of cash deposits in the amount of the duties. The final antidumping duties range from 7.39% to 45.09% and will extend back to October 18, 1998. The final countervailing duties range from 1.82% to 15.16% and will extend back to September 1, 1998.

The ITC voted unanimously that hot-rolled coiled plate imports are injuring the U.S. producers. Hot-rolled coiled plate constitutes about 99% of the market for stainless steel coiled plate. The ITC voted 4 -2 that cold-rolled coiled plate imports are not causing injury.

Today's ruling represents the latest in a series of setbacks for those foreign producers of stainless steel that have trafficked in unfairly priced imports over the course of many years. According to Will, recent favorable determinations on unfair trade cases covering other stainless steel product lines have resulted in an across-the-board decrease in imports and a more realistic U.S. market in which to compete. "The economics are pretty straightforward.

Eliminating the dumped foreign supply permits the supply and demand mechanics to return to normal," said Will.

Commerce initiated the unfair trade investigation on March 31, 1998, when U.S. producers of stainless steel plate in coils, the United Steelworkers of America (USWA), and two independent unions petitioned the U.S. government to look into charges of three dumping and foreign government subsidization. The petitioners charged that exports of the product from the named countries increased 155.5 percent between 1995 and 1997, the period of investigation. Three of the countries - Belgium, Italy and South Africa -- additionally were charged with providing export subsidies, loans, discounts, and a multitude of other government subsidy programs that unfairly benefit the stainless steel plate in coil producers in those countries.

The U.S. producers are ATI Allegheny Ludlum, Armco Inc., and J&L Specialty Steel, Inc. (See Note 1), located in Pittsburgh, PA, Lukens, Inc., Coatesville, PA, and North American Stainless (See Note 2), Ghent, KY. With the exception of the antidumping case against Canada, the United Steelworkers of America (USWA) joined the producers as a petitioner in the unfair trade action. In addition, two independent unions of Armco Inc., Butler Armco Independent Union, Butler, PA, and Zanesville Armco Independent Organization, Inc., Zanesville, OH, joined as petitioners.

Stainless steel plate in coils is distinct from other stainless steel flat-rolled products such as sheet and strip. The applications for plate in coils include chemical processing, transport and storage, pollution control equipment, petroleum refining, synthetic rubber manufacturing and industrial heating.

The U.S. producers 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.

The USWA represents 750,000 members in the United States and Canada employed in the primary and secondary metals industries.

David A. Hartquist, an international trade attorney with the Washington, D.C. law firm of Collier, Shannon, Rill & Scott, pllc, serves as lead counsel to SSINA and the petitioners.

Note 1: J&L Specialty Steel, Inc., is not a petitioner in the cases against Belgium.

Note 2: North American Stainless is not a petitioner in the antidumping case against Italy and not a petitioner in the CVD cases.