Ferroglobe PLC (NASDAQ:GSM) ("Ferroglobe" or the "Company")
welcomes the Department of Commerce’s ("DOC") preliminary
determinations imposing countervailing duties on silicon metal
imports into the United States from Australia, Brazil, and
Kazakhstan.
The DOC initiated its countervailing duty investigations in
response to a petition filed earlier this year by the leading
United States producer of silicon metal, Globe Specialty Metals,
Inc., a subsidiary of Ferroglobe, against these three
countries.
The DOC determined subsidy rates of:
Country |
Subsidy Rate |
|
|
|
|
Australia |
Simcoa: |
16.23% |
|
All others: |
16.23% |
|
|
|
Brazil |
Dow Corning: |
3.69% |
|
LIASA: |
52.07% |
|
All others: |
3.69% |
|
|
|
Kazakhstan |
Tau-Ken
Temir: |
120.00% |
|
All others: |
120.00% |
The resulting cash deposit requirements will go into effect when
the preliminary determinations are published in the Federal
Register and will apply to silicon metal imported into the
United States on or after that date. The determinations are
likely to be published next week.
Based on official United States import data for 2016, more than
54% of silicon metal imports into the U.S. will be subject to cash
deposit requirements.
Ferroglobe's Executive Chairman, Javier López Madrid,
commented, "We are confident that these affirmative preliminary
determinations will be the first step in ensuring a more
competitive and fair silicon metal market in the United States and
we look forward to receiving a favorable outcome in the ongoing
antidumping investigations. The work of the Department of
Commerce has been diligent and is critical to achieving a level
playing field for Ferroglobe and its employees in the United
States. Protecting the interests of our stakeholders is high
priority for management and actions such as this support our
ability to remain competitive.”
Globe Specialty Metals filed trade actions targeting two
different types of unfair practices. In addition to the
countervailing duty cases against imports from Australia, Brazil,
and Kazakhstan (which address unfair government subsidization), the
company filed antidumping cases against imports from Australia,
Brazil, and Norway (which address unfairly low import
pricing). The DOC will make preliminary determinations in the
antidumping cases on October 4, 2017. These determinations
may result in the imposition of additional duties.
The DOC’s full statement regarding the preliminary
determinations will be published at:
https://www.commerce.gov/news/press-releases
About Ferroglobe
Ferroglobe PLC is one of the world's leading suppliers of
silicon metal, silicon-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. The Company is based in
London.
Forward-Looking Statements
This release contains ‘‘forward-looking statements'' within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Forward-looking statements
are not historical facts but are based on certain assumptions of
management and describe the Company's future plans, strategies and
expectations. Forward-looking statements generally can be
identified by the use of forward-looking terminology, including,
but not limited to, "may", "could", "seek", "guidance", "predicts",
"potential", "likely", "believe", "will", "expect", "anticipate",
"estimate", "plan", "intends", "forecast" or variations of these
terms and similar expressions, or the negative of these terms or
similar expressions.
Forward-looking statements contained in this press release are
based on information presently available to us and assumptions that
we believe to be reasonable, but are inherently uncertain. As
a result, our actual results, performance or achievements may
differ materially from those expressed or implied by these
forward-looking statements, which are not guarantees of future
performance and involve known and unknown risks, uncertainties and
other factors that are, in some cases, beyond our control.
You are cautioned that all such statements involve risks and
uncertainties, including without limitation, risks that the legacy
businesses of Globe and FerroAtlántica will not be integrated
successfully or that we will not realize estimated cost savings,
value of certain tax assets, synergies and growth, or that such
benefits may take longer to realize than expected. Important
factors that may cause actual results to differ include, but are
limited to: (i) risks relating to unanticipated costs of
integration, including operating costs, customer loss and business
disruption being greater than expected; (ii) our organizational and
governance structure; (iii) the ability to hire and retain key
personnel; (iv) regional, national or global political, economic,
business, competitive, market and regulatory conditions including,
among others, changes in metals prices; (v) availability and
increases in the cost of raw materials; (vi) cost of energy; (vii)
competition in the metals and foundry industries; (viii)
environmental and regulatory risks; (ix) ability to identify
liabilities associated with acquired properties prior to their
acquisition; (x) ability to manage price and operational risks
including industrial accidents and natural disasters; (xi) ability
to manage foreign operations; (xii) changes in technology; (xiii)
ability to acquire or renew permits and approvals; (xiv) changes in
legislation or governmental regulations affecting Ferroglobe;
(xv) conditions in the credit markets; (xvi) risks associated with
assumptions made in connection with critical accounting estimates
and legal proceedings; (xvii) Ferroglobe's international
operations, which are subject to the risks of currency fluctuations
and foreign exchange controls; (xviii) the potential of
international unrest; and (xix) the effect of tax assessments, tax
adjustments, anticipated tax rates, or other regulatory compliance
costs. The foregoing list is not exhaustive. You should
carefully consider the foregoing factors and the other risks and
uncertainties that affect our business, including those described
in the "Risk Factors" section of our Annual Reports on Form 20-F,
Current Reports on Form 6-K and other documents we file from time
to time with the United States Securities and Exchange
Commission. We do not give any assurance (1) that we will achieve
our expectations or (2) concerning any result or the timing
thereof, in each case, with respect to any regulatory action,
administrative proceedings, government investigations, litigation,
warning letters, consent decree, cost reductions, business
strategies, earnings or revenue trends or future financial
results.
All information in this press release is as of the date of its
release. We do not undertake or assume any obligation to update
publicly any of the forward-looking statements in this press
release to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward-looking statements. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. We caution you not to place undue
reliance on any forward-looking statements, which are made only as
of the date of this press release.
INVESTOR CONTACT:
Ferroglobe PLC
Joe Ragan, US: +1 917 209 8581, UK: +44 (0) 7827 227 688
Chief Financial Officer
Email: jragan@ferroglobe.com
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