NEWS RELEASES - 1999

(Washington, D.C.) - U.S. stainless steel producers and their unions celebrated another victory in their fight against illegal imports with today's announcement by the Department of Commerce of final antidumping duties ranging up to 58.79% and countervailing duties ranging up to 59.30% on imports of stainless steel sheet and strip in coils from eight countries.

James F. Will, Chairman of the Specialty Steel Industry of North America (SSINA), and Chairman, President and CEO of Armco Inc., Pittsburgh, PA, one of the petitioners, said, "We are pleased with the results. Dumped and subsidized imports have injured a competitive and efficient U.S. industry and caused worker lay-offs. We will continue our aggressive campaign against unfairly traded imports."

Today's announcement is the result of unfair trade petitions filed with the U.S. government on June 10, 1998, by four U.S. producers of stainless steel sheet and strip in coils, the United Steelworkers of America (USWA), and two independent unions. The petitions charged France, Germany, Italy, Japan, Mexico, South Korea, Taiwan and the United Kingdom with "dumping" and requested that antidumping duties be imposed. Simultaneous countervailing duty (CVD) petitions alleging long-standing and extensive government subsidization were filed against France, Italy and South Korea.

The final antidumping duties and CVD rates by country and company follow:

In addition, Commerce determined that illegal imports from YUSCO and Ta Chen in Taiwan; Nippon Metal Industries, Nippon Steel Corporation, Nippon Yakin Kogyo and Nisshin in Japan; and Taihan and Dai-Yang in South Korea meet the test of "critical circumstances." A finding of "critical circumstances" backdates the suspension of liquidation by 90 days, thus capturing an additional few months worth of imports.

Based on the preliminary margins determined in November, 1998 (countervailing duty) and January, 1999 (antidumping), importers have had to post bonds to assure payment of the duties. The final decisions raised the margins significantly against Taiwanese, Italian, Korean and Mexican producers, and generally maintained the earlier findings against other countries.

The payment of duties in cash begins after the International Trade Commission (ITC) determines whether the industry has been injured or threatened with material injury. The ITC decision occurs within 45 days after Commerce announces final margins. If the ITC determines that injury has occurred, Commerce then notifies the Customs Service to begin collection from the importers cash deposits in the amount of the duties.

Stainless steel sheet and strip in coils is the industry's largest product line. In 1998, the target countries accounted for 80% of the total import tonnage of these products. Their value was $450 million. The product has many uses, including in automobiles, consumer appliances, building and construction, and a host of other applications.

The petitioners in the antidumping and countervailing duty cases are Allegheny Ludlum Corporation, Armco Inc. (not a petitioner in the Mexico case), and J&L Specialty Steel, Inc. (not a petitioner in the France case), all headquartered in Pittsburgh, PA; and Washington Steel division of Bethlehem Steel Corporation (recently partially shut down and partially sold). USWA, Butler Armco Independent Union and Zanesville Armco Independent Organization, Inc., joined the companies as petitioners in the unfair trade actions.

The companies are members of the Specialty Steel Industry of North America (SSINA), a Washington, D.C.-based trade association representing virtually all continental producers of stainless 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.