China

China

US government launches tower dumping investigation

UNITED STATES: The US Department of Commerce (DoC) is to investigate whether Chinese and Vietnamese tower makers are selling their products on the US market at unfairly low prices.

DoC will also probe whether China’s government is overly subsidising its tower companies. The probes could lead to duties slapped on towers imported to America from China and Vietnam.

In 2010, US imports of towers from China were worth $103.6 million. Imported Vietnamese towers were valued at $51.9 million.  

In response, Chinese officials have dismissed the investigation.

The DoC decision, issued yesterday, followed a complaint in late December by the Wind Tower Trade Coalition, whose members account for most tower sales by US companies.

China’s tower makers allegedly undercut US tower prices by 213.5%, while Vietnamese companies allegedly sold their products for 142% less.

The Asian companies’ dumping is shutting out US manufacturers, says the coalition, which is seeking duties of up to 60%.

The complaint was also filed with the US International Trade Commission (ITC), which will make a preliminary judgment by about February 13, 2012.  The whole process, at both agencies, will now take 12 or so months.

The coalition members are Broadwind Energy, DMI Industries, Katana Summit and Trinity Structural Towers.

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