Large Residential Washers Investigation No. TA-201-076 Publication 4745 December 2017 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman Irving A. Williamson Meredith M. Broadbent Catherine DeFilippo Director of Operations Staff assigned Nathanael Comly, Investigator Michael Szustakowski, Investigator Dennis Fravel, Industry Analyst Jeffrey Horowitz, Industry Analyst John Benedetto, Economist David Boyland, Accountant Cynthia Payne, Statistician Russell Duncan, Statistician Karl von Schriltz, Attorney Michael Anderson, Supervisory Investigator Special assistance from Robert Casanova, 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 Large Residential Washers Investigation No. TA-201-076 Publication 4745 December 2017 CONTENTS Page Determination and Remedy Recommendations ............................................................................ 1 Commission's Views on Injury ........................................................................................................ 3 Commissioners' Views on Remedy ................................................................................................. 65 Remedy Modeling Attachment ....................................................................................................... 81 Part I: Introduction ................................................................................................................ I‐1 Background ................................................................................................................................ I‐1 Statutory criteria and organization of the report ..................................................................... I‐1 Summary data ........................................................................................................................... I‐3 Previous and Related investigations ......................................................................................... I‐3 Large Residential Washers from Korea and Mexico ............................................................. I‐3 Large Residential Washers from China ................................................................................. I‐4 Administrative reviews .......................................................................................................... I‐4 The product ............................................................................................................................... I‐7 The imported articles described in this investigation ........................................................... I‐7 Like or directly competitive articles .................................................................................... I‐10 Physical properties .............................................................................................................. I‐12 Product features .................................................................................................................. I‐16 Manufacturing facilities and processes ............................................................................... I‐19 Marketing channels ............................................................................................................. I‐23 U.S. tariff treatment ............................................................................................................ I‐24 The U.S. market ....................................................................................................................... I‐24 U.S. producers ..................................................................................................................... I‐24 U.S. importers ...................................................................................................................... I‐28 U.S. purchasers .................................................................................................................... I‐32 Third‐country market import restraints .................................................................................. I‐32 Part II: Information relating to increased imports ................................................................. II‐1 U.S. imports .............................................................................................................................. II‐1 Shipments by product type .................................................................................................. II‐2 U.S. importers’ imports subsequent to March 31, 2017 ......................................................... II‐3 Imports by U.S. producers and related firms ........................................................................... II‐3 Imports of excluded products .................................................................................................. II‐3 i CONTENTS Page Part III: Serious injury or threat of serious injury ................................................................. III‐1 Overview ................................................................................................................................. III‐1 U.S. producers’ ownership and related or affiliated firms .................................................. III‐1 Reported changes experienced and anticipated by the industry ....................................... III‐1 U.S. production, capacity, and capacity utilization ................................................................. III‐3 Foreign‐trade zone production activities ............................................................................ III‐4 U.S. producers’ shipments ...................................................................................................... III‐5 Shipments by product type ................................................................................................. III‐6 Inventories maintained by U.S. producers and U.S. importers .............................................. III‐7 U.S. producers’ inventories ................................................................................................. III‐7 U.S. importers’ inventories .................................................................................................. III‐7 U.S. employment, hours, and wages ...................................................................................... III‐7 Financial condition of the U.S. industry .................................................................................. III‐8 Background .......................................................................................................................... III‐8 Operations on LRWs ............................................................................................................ III‐8 SG&A expenses and operating income or loss .................................................................. III‐11 Interest expense, other expenses, and net income or loss .............................................. III‐11 Capital expenditures, research and development expenses, and investment in productive facilities .............................................................................................................................. III‐11 Capital and investment ...................................................................................................... III‐13 Part IV: U.S. market and foreign industries .......................................................................... IV‐1 Apparent U.S. consumption and market shares ..................................................................... IV‐1 The LRW industries in North America ..................................................................................... IV‐2 The industry in Canada ........................................................................................................ IV‐2 The industry in Mexico ........................................................................................................ IV‐2 The LRW industries in Asia ...................................................................................................... IV‐5 The industry in China ........................................................................................................... IV‐6 The industry in Korea ........................................................................................................ IV‐11 The industry in Thailand .................................................................................................... IV‐15 The industry in Vietnam .................................................................................................... IV‐18 The LRW industries in other countries with free trade agreements with the United States .......................................................................................................... IV‐20 The industry in Colombia ................................................................................................... IV‐21 The LRW industries in other countries .................................................................................. IV‐25 The industry in Brazil ......................................................................................................... IV‐25 Other residential washer industries .....................................................................................