Electrolytic Manganese Dioxide from Greece and Japan
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ELECTROL VTIC MANGANESE DIOXIDE ~OM GREECE AND JAPAN Determinations of the Commission in Investigations Nos. 731-T A-406 and 408 (Final) Under the Tariff Act of 1930, Together With the Information Obtained in the Investigations . ': ·~ USITC PUBLICATION 2177 APRIL 1989 United States International Trade Commission Washington. DC 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION COMMISSIONERS Anne E. Brunsdale, Chairman Ronald A. Cass, Vice Chairman Alfred E. Eckes Seeley G. Lodwick David B. Rohr Don E. Newquist Staff assigned: Bruce Cates, Investigator Jack Greenblatt, Industry Analyst Catherine Beyer, Economist James Stewart, Accountant Craig McKee, Attorney George Deyman, Supervisory Investigator Address all communications to Kenneth R. Mason, Secretary to the Commission United States International Trade Commission Washington, DC 20436 CONTENTS teterminations. .... 1 Views of the Corrunission............... ..... 3 Views of Chairman Anne E. Brunsdale... ..... 25 Additional views of Vice-Chairman Ronald A. Cass. 27 Information obtained in the investigations. A-1 Introduction. ... ...•........ A-1 Background ... A-1 The product .. A-2 Description and uses ... A-2 Manufacturing process .. A-5 U.S. tariff. treatment .. A-7 Nature and extent of sales at LTFV .• A-7 The U.S. market ............. A-8 Apparent U.S. consumption. A-8 U.S. producers .. A-10 U.S. importers .. A-11 U.S. purchaser~. A-13 Channels of distribution ......•.•. A-14 Consideration of alleged material injury .. A-15 U.S. capacity, production, and capacity utilization .. A-15 Capacity ...........•. A-15 Production. ..•.. A-15 Capacity:utilization ...... A-15 Establishment product lines. A-15 U.S. producers' shipments ....•. A-15 Intracompany transfers .....•. A-16 Domestic corrunercial shipments. A-18 Export shipments ......... A-19 Total shipments .......... A-19 U.S. producers' purchases .. A-19 U.S. producers' inventories. A-19 Employment, wages, and productivity. A-20 Financial experience of U.S. producers .. A-22 EMD operations ..................... A-22 Overall establishment operations .... A-27 Investment in productive facilities .. A-29 Capital expenditures and research and development expenses •.. A-29 Impact of imports on capital and investment ........... A-29 Consideration of the question of threat of material injury. A-31 U.S. importers' inventories ......•..... A-33 U.S. importers' current orders for EMD ........•... A-33 Ability of foreign producers to generate exports .• A-34 Greece .. .....................................•.. A-34 Japan .......................................... A-34 Consideration of the causal relationship between the LTFV imports and the alleged material injury or threat thereof. ..•.. A-36 U.S. imports... ... .. ..... A-36 Greece. A-36 Japan .. A-37 Cumulated imports~ A-37 Total imports..... ..... A-37 Market penetration of imports ..... A-37 Corrunercial market penetration of imports. A-39 Total market penetration of imports ••.... A-39 ii CONTENTS Information obtained in the investigations--Continued Consideration of the causal relationship between the LTFV_imports and the alleged material injury or threat thereof--Continued Prices ............................................................... A-41 Bid and price information •..........•.........•.......•...•.•...... A-43 Purchaser prices. A-46 Exchange rates ....................................................... A-50 Appendix A. Notice of the Commission's institution of final antidumping investigations. • • . • . • • . • . B-1 Appendix B. List of participants in the Commission's hearing in the investigations......................................................... B-5 Appendix C. Notices of the Department of Commerce's final antidumping determinations . ......... -· .................................·. B-9 Appendix D. Comments received from producers on the impact of imports from Greece and Japan on their growth, development and production efforts, investment, and ability to raise capital ..•••....•........••.• B-21 Tables 1. EMD: Apparent U.S. consumption, commercial and total, 1986-88 ...•.. A-9 2. U.S. importers of EMD and their shares of the quantity of U.S. imports from the countries subject to these investigations and from all sources, 1988 ............... ·...........••......•.......•.. A-12~ 3. EMD: Duracell's purchases, 1986-88 ..•....•.••...........•.•.....•.. A-13 4. EMD: Eveready's purchases, 1986-88 ..•...•..••...................... A-14 5. EMD: Rayovac's purchases, 1986-88 .......... ~ .................•..... A-14 6. EMD: U.S. producers' capacity, production, and capacity utilization, 1986-88 .........................•.................... A-16 7. EMD: U.S. producers' intracompany transfers and domestic commercial shipments, 1986-88. • • . • . • . • . • . A-17 8. EMD: U.S. producers' exports, 1986-88 ............................... A-19 9. EMD: U.S. producers' inventories as of Dec. 31, 1985-88 ............ A-20 10. Average number of production and related workers employed in U.S. establishments producing EMD, hours worked by such workers, wages paid, and total compensation paid, 1986-88 •................. A-21 11. ·Income-and-loss experience of U.S. producers on their operations producing EMD, by firms, accounting years 1985-87 and interim periods ended Dec. 31, 1987, and Dec. 31, 1988 .................... A-23 12. Income-and-loss experience (on an average per-pound basis) of 3 U.S. producers on their operations producing EMD, by firms, accounting years 1985-87 and interim periods ended Dec. 31, 1987, and Dec. 31, 1988 ..........................•...........•.... A-27 13. Income-and-loss experience of U.S. producers on the overall operations of their establishments within which EMD is produced, accounting years 1985-87 and interim periods ended Dec. 31, 1987, and Dec. 31, 1988 ...........................•............... A-28 14. EMD: Total assets and value of property, plant, and equipment of 3 U.S. producers, accounting years 1985-87, and 2 U.S. producers for the year ended Dec. 31, 1988 ...............•.................. A-30~ iii CONTENTS Tables--Continued 15. EMO: U.S. importers' inventories of imports as of Dec. 31 of 1985-88 ........................................................... A-33 16. Salient data on the EMO industry in Greece, 1986-88, Rnd projections for 1989 ......................•....................... A-35 17. Salient data on the EMO industry in Japan, 1986-88, and projections for 1989 .............................................. A-36 18. EMO: U.S. imports, by country and by importer, 1986-88 ..•.......... A-37 19. EMO: U.S. importers' domestic shipments, by source country, 1986-88. A-38 20. EMO: U.S. producers' domestic commercial shipments, U.S. importers' domestic shipments, apparent U.S. commercial consumption, and importers' domestic shipments as a share of apparent U.S. commercial consumption, 1986-88 ..................... A-39 21. EMO: U.S. producers' total domestic shipments (including captive shipments), U.S. importers' domestic shipments, apparent U.S. consumption, and importers' domestic shipments as a share of apparent U.S. consumption, 1986-88. A-40 22. Bid information from U.S. producers and importers, January 1986- December 1988. A-44 23. Bid information as reported by Duracell, Inc., January 1986- December 1988 .......••..•...................................••.... A-47 24. Bid information as reported by Eveready Battery Co., January 1986- December 1988 ..................................................... A-48 25. Purchase prices for alkaline-grade EMO as reported by Rayovac Corp., by quarters, January 1986-December 1988 ......•............. A-50 26. Nominal exchange rates of the Greek drachma and the Japanese yen in U.S. dollars, ~eal exchange-rate equivalents, and producer price indexes in Greece and Japan, indexed by quarters, January 1986-December 1988 ........................................ A-51 Note.--Information that would reveal business proprietary operations of individual concerns may not be published and therefore has been deleted from this report. Such deletions are indicated by asterisks. UNITED STATES INTERNATIONAL TRADE COMMISSION Investigation Nos. 731-TA-406 and 408 (Final) ELECTROLYTIC MANGANESE DIOXIDE FROM GREECE AND JAPAN Determinations On the basis of the record l/ developed in the subject investigations, the Commission determines, pursuant to section 735(b) of the Tariff Act of 1930 (19 U.S.C. § 1673d(b) (the Act), that an industry in the United States is materially injured by reason of imports from Greece 2./ and Japan of electrolytic manganese dioxide (EMO), l/ provided for in subheading 2820.10.00 of the Harmonized Tariff Schedule of the United States, that have been found by the Department of Commerce to be held sold in the United States at less than fair value (LTFV). Background The Commission instituted these investigations effective November 14, 1 1988, following preliminary determinations by the Department of Commerce that imports of EMO from Greece and Japan were being sold in the United States at LTFV within the meaning of section 731 of the Act (19 U.S.C. § 1673). Notice of the institution of the Commission's investigations and of the public hearing to be held in connection therewith was given by posting copies of the notice in the Office of the Secretary, U.S. International Trade Commission, Washington, DC,and by publishing the notice in the Federal Register of December 28, 1988 (53 F.R. 52516). The hearing was held in Washington, DC, on March 9, 1989, and all persons who requested