WASHINGTON, Jan. 27, 2021 /PRNewswire/ -- Globe Specialty
Metals, Inc., a subsidiary of Ferroglobe PLC (NASDAQ:GSM) ("GSM"),
and Mississippi Silicon LLC ("MS"), together representing the
majority of American silicon metal production, today welcomed news
that the U.S. Department of Commerce ("Commerce") will impose
preliminary duties of 7.41% on all silicon metal imports from
Malaysia.
Last August, the U.S. International Trade Commission (ITC)
preliminarily determined that imports from Malaysia, along with Bosnia and Herzegovina, Iceland, and Kazakhstan, are a cause of material injury to
the U.S. industry. On November 30,
2020, Commerce subsequently announced duties of 120% on all
silicon metal imports from Kazakhstan, and on December 8, 2020, announced duties up to
47.54% on imports from Bosnia and
Herzegovina and Iceland.
The Commerce and ITC investigations are now in their final
phases.
"Today's announcement is good news for our industry," said
Eddie Boardwine, Chief Operations
Officer of MS. "The margins announced reflect unfair pricing by
Malaysian producers that has distorted, and seriously harmed, the
U.S. silicon metal market. Commerce's decision creates significant
risk to importers, whose final duty obligation will remain
uncertain for several years. We appreciate the government's efforts
to respond to unfair trade practices and look forward to seeing
conditions in the U.S. market reflect free and fair trade of
silicon metal."
On June 30, 2020, GSM and MS filed
petitions to stop silicon metal producers in the four
aforementioned countries from selling dumped and unfairly
subsidized silicon metal imports into the
United States. In their petitions, the companies asked
Commerce and the ITC to impose duties to offset these unfair trade
practices.
"Unfairly-traded silicon metal from countries like Malaysia has long been a challenge for our
industry – today's announcement is another welcome step toward
leveling the playing field in the U.S. market," said Marco Levi, Chief Executive Officer of GSM's
parent, Ferroglobe. "We appreciate the diligent efforts by the
Commerce Department in this investigation."
Final determinations will be announced in the Kazakhstan, Iceland, and Bosnia
and Herzegovina investigations on February 21, 2021. Commerce's final determination
in the Malaysia investigation will
be announced in early June, 2021.
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 highly purified form
of silicon used in solar cells and semi-conductors.
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.
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