ITC Finds U.S. Silicon Metal Producers Injured by Imports from Bosnia and Herzegovina, Iceland, Malaysia, and Kazakhstan
August 13 2020 - 5:30PM
Globe Specialty Metals, Inc., a subsidiary of Ferroglobe PLC
(NASDAQ:GSM) (“GSM”), and Mississippi Silicon LLC (“MS”),
collectively representing the majority of American silicon metal
production, today announced that the U.S. International Trade
Commission (“ITC”) will continue investigating the harm caused by
imports of silicon metal into the United States. The announcement
comes after Commissioners voted 5-0 that there is a “reasonable
indication” that silicon metal imports from Bosnia and Herzegovina,
Iceland, Malaysia and Kazakhstan are materially injuring the U.S.
industry.
The ITC’s preliminary decision follows a July
21, 2020 announcement that the U.S. Department of Commerce (“DOC”)
would investigate unfair pricing and subsidies of these
products.
“Unfair and illegal trade practices can have
devastating effects, not just on the businesses and workers
directly and most immediately impacted – the local communities and
the entire economy also suffer from the fallout,” said Marco Levi,
Chief Executive Officer of GSM’s parent, Ferroglobe. “We applaud
the ITC for taking this step toward restoring fair competition to
the U.S. silicon metal 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 DOC and ITC to impose duties on Bosnia and
Herzegovina, Iceland and Malaysia to offset unfair pricing and to
impose duties on Kazakhstan to offset unfair subsidies.
Now that the ITC has made its initial
determination, duties could be imposed on imports from Kazakhstan
as early as September 2020, and on imports from Bosnia and
Herzegovina, Iceland and Malaysia as early as December 2020.
“Today’s vote reaffirms what U.S. producers of
silicon metal and their workers have known for years – that our
industry is suffering as a result of dumped and subsidized
imports,” said Eddie Boardwine, Chief Operations Officer of MS.
“Fortunately, our trade laws are set up to support fair trade. On
behalf of our employees, customers, and colleagues, we applaud the
ITC for its commitment to addressing harmful trade practices and
look forward to seeing a level playing field restored.”
Silicon metal is an important element added to
various grades of aluminum alloys used in performance applications
such as automotive components and aerospace products. Silicon metal
also is a critical raw material in the production of silicone
compounds used in numerous products including sealants, adhesives,
rubber gaskets, caulking compounds, lubricants, food additives,
coatings, polishes, and cosmetics, among others. In addition,
silicon metal is the base material in the production of
polysilicon, a purified form of silicon used in solar cells and
semi-conductors.
About Globe Specialty
Metals
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.
INVESTOR CONTACT:Gaurav Mehta,
EVP - Investor Relationsinvestor.relations@ferroglobe.com
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