Commerce Responds to Unfair Trade Practices With Import Duties on Silicon Metal from Bosnia and Herzegovina, Iceland, Kazakhstan; U.S. Industry Applauds Decision

Rhea-AI Summary

On February 23, 2021, the U.S. Department of Commerce announced final antidumping and countervailing duties of up to 160% on silicon metal imports from Bosnia and Herzegovina, Iceland, and Kazakhstan. This decision follows petitions filed by Globe Specialty Metals and Mississippi Silicon to combat unfair trade practices affecting the U.S. industry. The U.S. International Trade Commission will vote on March 24 to affirm the decision. The effort aims to level the playing field for American manufacturers and protect local economies from injury caused by subsidized foreign imports.

Positive

• Final duties of up to 160% on silicon imports enhances competitive positioning for GSM.
• Support from the U.S. government strengthens the manufacturing sector and local economies.

Negative

• None.

WASHINGTON, Feb. 23, 2021 /PRNewswire/ -- American manufacturers Globe Specialty Metals, Inc., a subsidiary of Ferroglobe PLC (NASDAQ:GSM) ("GSM"), and Mississippi Silicon LLC ("MS"), representing the majority of American silicon metal production, today applauded news that the U.S. Department of Commerce ("Commerce") will impose final antidumping (AD) and countervailing (CVD) duties of up to 160% on silicon metal imports from Bosnia and Herzegovina, Iceland, and Kazakhstan.

Next, the U.S. International Trade Commission (ITC) will vote whether to affirm its preliminary decision that these imports have injured the U.S. industry. Assuming the outcome is affirmative, formal orders will be published shortly thereafter. The ITC is scheduled to vote on March 24.

"Unfair trade practices have devastating effects, not just on the businesses and workers most directly impacted – families, local communities, and the entire economy also get caught in the undertow," said Eddie Boardwine, Chief Operations Officer of MS. "We appreciate Commerce's efforts to support American manufacturing, and look forward to seeing fair competition again in the U.S. market."

On June 30, 2020, GSM and MS filed petitions to stop silicon metal producers in Bosnia and Herzegovina, Iceland, Malaysia and Kazakhstan from selling dumped and unfairly subsidized silicon metal imports into the United States. In their petitions, the companies asked the Commerce and ITC to impose duties on to offset unfair pricing and unfair subsidies.

Since the initial filing, investigations into all four countries have been ongoing. Most recently, on January 27, 2021, Commerce announced duties of 7.41% on all imports of silicon metal from Malaysia. A final determination in the Malaysia investigation will be announced in early June, 2021.

"U.S. businesses, small and large, routinely face challenges from imports that engage in unfair pricing practices or receive improper subsidies – even the most efficient and agile industry, like ours, can be injured if we're forced to compete with one hand tied behind our back," said Marco Levi, Chief Executive Officer of GSM's parent, Ferroglobe. "Fortunately, the trade laws are crafted to support a level playing field where everyone can compete fairly."

For more on the petitions, see the companies' press release.
For more on the ITC's investigation, see the Commission's press release.
For more on Commerce's investigations, see the agency's press release.
For more on Commerce's preliminary determination in the Kazakhstan investigation, see the agency's press release.
For more on Commerce's preliminary determination in the Bosnia and Herzegovina and Iceland investigations, see the agency's press release.
For more on Commerce's preliminary determination in the Malaysia investigation, see the agency's fact sheet.

About Globe Specialty Metals and Mississippi Silicon

Globe Specialty Metals, Inc. is a wholly-owned U.S. subsidiary of Ferroglobe PLC, one of the world's leading suppliers of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. Through its subsidiaries, GSM owns metallurgical manufacturing facilities and other operations in Ohio, West Virginia, New York, Alabama, Indiana, Florida and Kentucky.

Mississippi Silicon LLC is a partnership between Rima Holding USA, Inc. and Clean Tech I LLC. Rima Holding USA Inc. is the majority owner of MS and also is associated with Rima Industrial S/A, a leading ferroalloy and non-ferrous metals producer in Brazil. Clean Tech I LLC is a partnership composed of strategic investors and financial advisers. MS's manufacturing operation is based in Burnsville, MS, and its silicon metal serves customers throughout the United States.

Globe and Mississippi Silicon are represented in these proceedings by Adam H. Gordon, Esq. of The Bristol Group PLLC.

For more information, visit http://investor.ferroglobe.com and https://www.missilicon.com/.

Contact Elizabeth Heaton, elizabeth@EAHstrategiesLLC.com, 202-445-9858.

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SOURCE Globe Specialty Metals / Mississippi Silicon

FAQ

What are the antidumping duties imposed on imports for GSM?

The U.S. Department of Commerce imposed duties of up to 160% on silicon metal imports from Bosnia and Herzegovina, Iceland, and Kazakhstan.

When will the U.S. International Trade Commission vote on the silicon metal import duties?

The ITC is scheduled to vote on March 24, 2021.

Why did GSM and Mississippi Silicon file petitions against silicon imports?

They aimed to address unfair trade practices that harm the U.S. industry and promote fair competition.

What impact will the antidumping duties have on GSM's business?

The duties are expected to enhance GSM's competitive position by reducing subsidized imports.