U.S. Industry Reacts To Commerce Department Final Determination That Large Power Transformers From South Korea Are Being Dumped
WASHINGTON, July 3, 2012 /PRNewswire-USNewswire/ -- The U.S. Transformer Fair Trade Coalition reacted with strong support for the U.S. Department of Commerce's ("Commerce") final determination that imports of liquid dielectric large power transformers ("LPTs") from South Korea are being dumped in the United States at average dumping margins of 14.95 percent for Hyundai Heavy Industries ("Hyundai") and 29.04 percent for Hyosung Corporation ("Hyosung"). The average dumping margin for all other Korean producers, including ILJIN Electric and LS Industrial Systems, was found be 22 percent. The only remaining step in the antidumping case is completion of the injury investigation by the U.S. International Trade Commission ("ITC") which will hold its final injury vote on August 6, 2012.
The U.S. Transformer Fair Trade Coalition, an ad hoc coalition of domestic transformer producers, filed the trade action on July 14, 2011, in response to a large and increasing volume of dumped imports of LPTs from South Korea over the past three years that has injured domestic LPT producers. The petitioners in the coalition are ABB Inc. of Cary, North Carolina, Delta Star , Inc. of Lynchburg, Virginia, and Pennsylvania Transformer Technology, Inc. of Canonsburg, Pennsylvania.
"The dumping margins announced today are very significant and demonstrate that the domestic industry was justified in seeking relief from dumped large power transformers from Korea. Even on expensive capital equipment like large power transformers, foreign producers are willing to dump to gain sales and market share in the United States at the expense of the domestic industry," commented Alan Luberda , the domestic industry's lead trade counsel at Kelley, Drye & Warren.
Imports of LPTs from South Korea have been required to deposit estimated dumping duties or post a bond with U.S. Customs and Border Protection on all entries of LPTs from Korea since February 16, 2012, when the Commerce Department's preliminary determination of dumping was published in the Federal Register. If the ITC reaches an affirmative injury determination on August 6, an antidumping duty order will be published covering all LPTs from South Korea. The order will remain in place for a minimum of five years and importers will be required to deposit estimated duties in the amounts established in today's Commerce ruling.
Large power transformers are used extensively in high voltage electrical power transmission systems to transfer power by electromagnetic induction between circuits at the same frequency, usually with changed values of voltage and current. The scope of the investigation covers liquid dielectric large power transformers with a top rating of 60 MVA or more. The petitioners are represented in these actions by R. Alan Luberda and Kathleen W. Cannon of the law firm Kelley, Drye & Warren LLP.
SOURCE U.S. Transformer Fair Trade Coalition
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