US Trade Representative Requests WTO Consultations with China on Illegal Aluminum Subsidies
January 12 2017 - 9:15AM
Century Aluminum Company’s (Nasdaq:CENX) President and Chief
Executive Officer Michael A. Bless today commended the U.S. Trade
Representative’s (USTR) announcement that the United States has
requested World Trade Organization (WTO) consultations with China
regarding the Chinese government’s illegal subsidization of its
aluminum industry.
For years, the Chinese government has used its
state-directed financial system and other channels to expand and
maintain millions of tons of uneconomic and unnecessary primary
aluminum smelting capacity. The resulting excess capacity has
caused a persistent global glut of metal that has made it
impossible for market-oriented producers in the United States and
elsewhere to sell profitably. Smelters in the United States
have been forced to shut down as a result, with thousands of
workers losing their jobs as China continues to pump state support
into an already bloated industry.
“USTR’s decision to challenge these
unreasonable, illegal, and harmful subsidies is an important step
towards a long-term solution, and we are thankful for the
Administration’s efforts on behalf of our industry,” Bless
said. “But it is only a first step. Our industry is in
crisis because China refuses to play by the rules. We need
action now to ensure the survival of what remains of the U.S.
aluminum industry.”
“Century believes strongly in the industry’s
efforts to defend itself from unfair trade,” Bless said, “and we
will continue to help lead those efforts until the market is
restored to balance. We look forward to working with the
incoming Administration in furtherance of that goal.”
Aluminum is a key input in a variety of
advanced, downstream applications, from lightweight vehicles to
aerospace technology. There were 18 smelters in the United
States in 2001, when China joined the WTO. Today, there are
only five, following a series of closures under the pressure of
depressed global prices. Over the same period, China has gone
from a minor player in the global industry to producing more than
50% of total global supply, even though China’s industry consists
largely of high-cost smelters that are at the top end of the global
cost curve.
About Century Aluminum
Century Aluminum Company owns primary
aluminum capacity in the United States and Iceland.
Century's corporate offices are located in Chicago,
IL. Visit www.centuryaluminum.com for more
information.
Cautionary Statement
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are statements about future events and are based on our
current expectations. These forward-looking statements may be
identified by the words "believe," "expect," "hope," "target,"
"anticipate," "intend," "plan," "seek," "estimate," "potential,"
"project," "scheduled," "forecast" or words of similar meaning, or
future or conditional verbs such as "will," "would," "should,"
"could," "might," or "may." Our forward-looking statements include,
without limitation, statements with respect to the potential
outcome of any trade claims to address excess capacity or unfair
trade practice; the future financial and operating performance of
Century and its subsidiaries; and statements with respect to our
future business objectives, strategies and initiatives.
Where we express an expectation or belief as to
future events or results, such expectation or belief is expressed
in good faith and believed to have a reasonable basis. However, our
forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties which may
cause actual results to differ materially from future results
expressed, projected or implied by those forward-looking
statements. Important factors that could cause actual results and
events to differ from those described in such forward-looking
statements can be found in the risk factors and forward-looking
statements cautionary language contained in our Annual Report on
Form 10-K, quarterly reports on Form 10-Q and in other filings made
with the Securities and Exchange Commission. Although we have
attempted to identify those material factors that could cause
actual results or events to differ from those described in such
forward-looking statements, there may be other factors that could
cause results or events to differ from those anticipated, estimated
or intended. Many of these factors are beyond our ability to
control or predict. Given these uncertainties, the reader is
cautioned not to place undue reliance on our forward-looking
statements. We undertake no obligation to update or revise publicly
any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Peter Trpkovski
(Investors and media)
312-696-3112
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