Overview
WPC Technologies is the leading American-owned manufacturer and developer of corrosion-inhibiting pigments and stain inhibitors. WPC’s core product line is strontium chromate, a corrosion inhibitor. In 2018, the company became concerned when sales declined and they lost customers who purchased products from two other producers who were selling their competing products at a significantly lower price – a price that was unfair in the U.S. market.
Challenges
The processes surrounding investigations of antidumping petitions by the U.S. Department of Commerce and the U.S. International Trade Commission (ITC) can be daunting, even under the best of circumstances. Results that would create a fair market for WPC’s product moving forward would be a challenge, but achieving a favorable duty rate high enough to offset the damages suffered by the company, an even greater one.
Solution
Our team assisted WPC Technologies with filing initial petitions with Commerce and the ITC in September 2018 to investigate imported strontium chromate merchandise sold by Austrian and French producers in U.S. markets at less than fair value that were injuring WPC. During the investigation, we filed briefs and comments to support WPC’s position and substantiate their petition.
Result
An antidumping investigation ensued and affirmed our client’s claims. Commerce assigned a dumping rate of 25.9 percent to the sole mandatory Austrian respondent, Habich GmbH, and all other Austrian producers and exporters. Additionally, Commerce assigned a 32.16 percent dumping rate to the sole mandatory respondent, Société Nouvelle des Couleurs Zinciques, in the French investigation. Commerce assigned the same rate for all other French producers and exporters.
Likewise, the ITC determined unanimously that WPC experienced material injury resulting from unfairly priced imports of strontium chromate from Austria and France. With this ruling, the issuance of the proposed antidumping orders set by Commerce is expected to take place in November 2019.
As a small American producer, this case was a substantial undertaking for WPC, but the results should lead to fair pricing in the future, which was the company’s goal, and the substantial duties will go a long way in helping the client regain market position.