Celanese Files Anti-Dumping Petition with U.S. Dept. of Commerce Against Korea Petrochemical Industry Co., Ltd.
Thu, 19 Mar 2020
DALLAS & SEOUL, South Korea--(BUSINESS WIRE)--
Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today announces it has recently filed a petition with the U.S. Department of Commerce (U.S. DOC) and the U.S. International Trade Commission (U.S. ITC) seeking Anti-Dumping (AD) duties on imports of Ultra-High Molecular Weight Polyethylene (UHMWPE) from Korea Petrochemical Industry Co., Ltd. (KPIC) of Seoul, South Korea.
“In order to operate in fair and sustainable market conditions, Celanese was compelled to file an anti-dumping case against KPIC, which has caused severe damage to Celanese‘s business through its dumping practices,” said Tom Kelly, Senior Vice President of the Engineered Materials business of Celanese. “Fair and sustainable pricing is important for the health of every industry, and long term, this will lead to increased supply availability in the market place and to broader choices for our customers.”
GUR®, the Celanese trade name for its UHMWPE product, is a core business and growing market and the company will continue to support market growth of this product by investing in its global manufacturing capabilities. With its unique quality, global manufacturing network and decades of experience producing GUR®, Celanese is highly committed to this business across all market segments and regions. Celanese values the long-term, strategic customer relationships it maintains in the Americas region, but the market requires a fair and sustainable price level to support these customers long term.
UHMWPE is used in a wide array of applications in multiple industries, including construction, agriculture, material handling, transportation, textiles, pulp and paper, food and beverage, mining, marine, plastics, oil and gas, high performance fibers, battery separators, and waste water treatment.
Under U.S. law, a domestic industry can petition the government to initiate an anti-dumping investigation into the pricing of an imported product to determine whether it is sold in the U.S. at less than fair value (i.e., dumped). Additional duties can be imposed if the U.S. DOC determines that imported goods are “dumped” and the U.S. ITC determines that the domestic industry is materially injured or threatened with such injury by reason of subject imports.
If the U.S. ITC and U.S. DOC make preliminary affirmative determinations, U.S. importers will be required to post cash deposits in the amount of the anti-dumping duties for all entries on or after the date DOC’s preliminary determination is published in the Federal Register. The preliminary anti-dumping rates can change in DOC’s final determination, especially if foreign producers participate fully in the investigation.
Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Our businesses use the full breadth of Celanese's global chemistry, technology and commercial expertise to create value for our customers, employees, shareholders and the corporation. As we partner with our customers to solve their most critical business needs, we strive to make a positive impact on our communities and the world through The Celanese Foundation. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of $6.3 billion. For more information about Celanese Corporation and its product offerings, visit www.celanese.com or our blog at www.celaneseblog.com.
The merchandise covered by the proposed scope is Ultra High Molecular Weight Polyethylene (UHMWPE). UHMWPE is a linear polyethylene, in granular or powder form. It is defined by its melt mass-flow rate of <0.1 g/10 min, measured at 190° C and 21.6 kg load, based on the methods and calculations set forth in the International Organization for Standardization (ISO) standards 21304-1 and 21304-2. UHMWPE generally has a Chemical Abstract Service (CAS) registration number of 9002-88-4.
The scope includes all UHMWPE in granular or powder forms meeting the above specifications regardless of additives introduced in the manufacturing process. UHMWPE blended with other products is included in the scope of this investigation where UHMWPE is the predominant material within the blend.
Excluded from the scope of the investigation is medical-grade UHMWPE. Medical-grade UHMWPE has a minimum viscosity of 2000 ml/g at a concentration of 0.02% at 135° C (275° F) in decahydronaphthalene and an elongational stress of 0.2 MPa or greater. Medical-grade UHMWPE is further defined by its ash and trace element content, which shall not exceed the following maximum quantities as set forth in ISO-5834-1: ash (125 mg/kg), titanium (40 mg/kg), calcium (5 mg/kg), chlorine (30 mg/kg), and aluminum (20 mg/kg). ISO 5834-1 further defines medical-grade UHMWPE by its particulate matter content, which requires that there shall be no more than three particles of contaminant per 300 ± 20 g tested. Each of the above criteria is calculated based on the standards and methods used in ISO 5834-1.
UHMWPE is classifiable under the HTS US subheadings 3901.10.10.00 and 3901.20.10.00
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Source: Celanese Corporation