Wind Towers from China and Vietnam
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Utility Scale Wind Towers from China and Vietnam Investigation Nos. 701-TA-486 and 731-TA-1195-1196 (Preliminary) Publication 4304 February 2012 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Deanna Tanner Okun, Chairman Irving A. Williamson, Vice Chairman Daniel R. Pearson Shara L. Aranoff Dean A. Pinkert David S. Johanson Karen Laney Acting Director of Operations Staff assigned Nathanael Comly, Investigator Andrew David, Industry Analyst Clark Workman, Economist David Boyland, Accountant Michael Haldenstein, Attorney Mara Alexander, Statistician Douglas Corkran, Supervisory Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Utility Scale Wind Towers from China and Vietnam Investigation Nos. 701-TA-486 and 731-TA-1195-1196 (Preliminary) Publication 4304 February 2012 CONTENTS Page Determinations.................................................................. 1 Views of the Commission ......................................................... 3 Part I: Introduction ............................................................ I-1 Background .................................................................. I-1 Statutory criteria and organization of the report...................................... I-1 Statutory criteria ........................................................... I-1 Organization of the report.................................................... I-2 U.S. market summary.......................................................... I-2 Summary data and data sources .................................................. I-3 Previous and related investigations................................................ I-3 Nature and extent of alleged subsidies and sales at LTFV .............................. I-4 Alleged subsidies........................................................... I-4 Alleged sales at LTFV ....................................................... I-5 The subject merchandise........................................................ I-5 Commerce’s scope.......................................................... I-5 Tariff treatment ............................................................ I-6 The product .................................................................. I-6 Description and applications .................................................. I-6 Manufacturing processes ..................................................... I-11 Domestic like product issues .................................................... I-15 Physical characteristics and uses............................................... I-15 Manufacturing facilities and production employees ................................ I-15 Interchangeability .......................................................... I-16 Customer and producer perceptions ............................................ I-16 Channels of distribution...................................................... I-16 Price .................................................................... I-16 Part II: Conditions of competition in the U.S. market ................................ II-1 U.S. market characteristics...................................................... II-1 Channels of distribution ........................................................ II-3 Geographic distribution ........................................................ II-3 Supply and demand considerations ................................................ II-3 U.S. supply ............................................................... II-3 U.S. demand .............................................................. II-6 Substitutability issues .......................................................... II-7 Factors Affecting Purchases .................................................. II-7 Lead times................................................................ II-7 Comparisons of domestic products and subject and nonsubject imports ................ II-7 i CONTENTS Page Part III: U.S. producers’ production, shipments, and employment ...................... III-1 U.S. producers ............................................................... III-5 U.S. capacity, production, and capacity utilization ................................... III-7 U.S. producers’ shipments ...................................................... III-9 U.S. producers’ inventories ..................................................... III-10 U.S. producers’ imports and purchases ............................................. III-11 U.S. employment, wages, and productivity ......................................... III-11 Part IV: U.S. imports, apparent U.S. consumption, and market shares .................. IV-1 U.S. importers................................................................ IV-1 U.S. imports ................................................................. IV-3 Negligibility ................................................................. IV-5 Cumulation considerations...................................................... IV-5 Geography................................................................ IV-5 Presence in the Market ...................................................... IV-6 Apparent U.S. consumption ..................................................... IV-7 U.S. market shares ............................................................ IV-9 Ratio of imports to U.S. production ............................................... IV-10 Part V: Pricing and related information ............................................ V-1 Factors affecting pricing........................................................ V-1 Raw material costs.......................................................... V-1 U.S. inland transportation costs................................................ V-1 Pricing practices.............................................................. V-2 Pricing methods ............................................................ V-2 Sales terms and discounts .................................................... V-2 Price data ................................................................... V-2 GE’s bid data.............................................................. V-3 GE’s estimated landed costs .................................................. V-3 Siemens bid data ........................................................... V-4 Lost sales and lost revenues ..................................................... V-5 Part VI: Financial condition of U.S. producers ...................................... VI-1 Background .................................................................. VI-1 Operations on wind towers...................................................... VI-1 Revenue.................................................................. VI-5 Cost of goods sold .......................................................... VI-6 Profitability ............................................................... VI-8 Capital expenditures, research and development expenses, total net assets, and return on investment ....................................................... VI-9 Capital and investment......................................................... VI-10 ii CONTENTS Page Part VII: Threat considerations and information on nonsubject countries ............... VII-1 The industry in China .......................................................... VII-2 Overview................................................................. VII-2 Wind tower operations....................................................... VII-5 The industry in Vietnam ........................................................ VII-7 Overview................................................................. VII-7 Wind tower operations....................................................... VII-7 Combined data for the industries in China and Vietnam ............................... VII-8 U.S. importers’ inventories...................................................... VII-9 U.S. importers’ current orders ................................................... VII-9 Antidumping investigations in third-country markets ................................. VII-10 Information on nonsubject sources ............................................... VII-10 Global shipments........................................................... VII-11 Leading nonsubject supplies to the U.S. market ................................... VII-11 Appendixes A. Federal Register notices........................................................ A-1 B. Conference witnesses .......................................................... B-1 C.Summary data................................................................ C-1 D.Wind projects in the United States................................................ D-1 Note.–Information that would reveal confidential operations of individual concerns may not be published and therefore has been deleted from this report. Such deletions are indicated by asterisks. iii UNITED STATES INTERNATIONAL TRADE COMMISSION Investigation Nos. 701-TA-486 and 731-TA-1195-1196 (Preliminary) UTILITY SCALE WIND TOWERS FROM CHINA AND VIETNAM DETERMINATIONS On the basis of the record1 developed in the subject investigations, the United States International Trade Commission (Commission) determines,2 pursuant to sections 703(a) and 733(a) of the Tariff Act of 1930 (19 U.S.C. '' 1671b(a) and 1673b(a))