Utility Scale Wind Towers from China and Vietnam Investigation Nos. 701-TA-486 and 731-TA-1195-1196 (Final) Publication 4372 February 2013 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Irving A. Williamson, Chairman Daniel R. Pearson Shara L. Aranoff Dean A. Pinkert David S. Johanson Meredith M. Broadbent Robert B. Koopman Director, Office of Operations Staff assigned Nathanael Comly, Investigator Andrew David, Industry Analyst Craig Thomsen, Economist David Boyland, Accountant Michael Haldenstein, Attorney Mara Alexander, Statistician Douglas Corkran, Supervisory Investigator Special assistance from David Goldfine, Attorney 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 (Final) Publication 4372 February 2013 CONTENTS Determinations .............................................................................................................................................. 1 Views of the Commission ............................................................................................................................. 3 Views of Commissioner Dean A. Pinkert ................................................................................................... 31 Dissenting views of Commissioners Daniel R. Pearson, David S. Johanson, and Meredith M. Broadbent .......................................................................................................................... 37 Part I: Introduction ............................................................................................................................. I-1 Background ............................................................................................................................................ I-1 Statutory criteria and organization of the report .................................................................................... I-1 Statutory criteria ................................................................................................................................. I-1 Organization of report ........................................................................................................................ I-2 Market summary ................................................................................................................................ I-3 Summary data and data souces .............................................................................................................. I-3 Previous and related investigations ........................................................................................................ I-3 Nature and extent of subsidies and sales at LTFV ................................................................................. I-4 Subsidies ............................................................................................................................................ I-4 Sales at LTFV .................................................................................................................................... I-5 The subject merchandise ....................................................................................................................... I-6 Commerce’s scope ............................................................................................................................. I-6 Tariff treatment .................................................................................................................................. I-7 The product ........................................................................................................................................... I-7 Description and applications .............................................................................................................. I-7 Manufacturing processes ................................................................................................................. I-12 Domestic like product issues ............................................................................................................... I-17 Physical characteristics and uses ...................................................................................................... I-17 Manufacturing facilities and production employees ........................................................................ I-17 Interchangeability ............................................................................................................................ I-18 Customer and producer perceptions ................................................................................................. I-18 Channels of distribution ................................................................................................................... I-18 Price ................................................................................................................................................. I-18 Part II: Supply and demand information ........................................................................................... II-1 U.S. market characteristics ................................................................................................................... II-1 Channels of distribution ....................................................................................................................... II-1 Geographic distribution ........................................................................................................................ II-1 Supply and demand considerations ...................................................................................................... II-2 U.S. supply ........................................................................................................................................ II-2 Foreign supply .................................................................................................................................. II-3 U.S. demand ...................................................................................................................................... II-5 Substitutability issues ......................................................................................................................... II-12 Purchaser characteristics ................................................................................................................. II-12 Knowledge of country sources and suppliers ................................................................................. II-13 Long-term supply agreements ......................................................................................................... II-14 Factors affecting purchasing decisions ........................................................................................... II-14 Lead times ....................................................................................................................................... II-19 Comparisons of domestic products, subject imports, and nonsubject imports ............................... II-19 Elasticity estimates .............................................................................................................................. II-21 U.S. supply elasticity ...................................................................................................................... II-22 U.S. demand elasticity .................................................................................................................... II-22 Substitution elasticity ...................................................................................................................... II-22 i CONTENTS Part III: U.S. producers’ production, shipments, and employment ................................................ III-1 U.S. producers ...................................................................................................................................... III-5 U.S. production, capacity, and capacity utilization .............................................................................. III-6 Aggregate wind tower operations .................................................................................................... III-6 Supply agreements ........................................................................................................................... III-7 Facility level wind tower operations ................................................................................................ III-8 Monthly wind tower operations ..................................................................................................... III-10 2012/13 wind tower operations ...................................................................................................... III-10 U.S. producers’ shipments ................................................................................................................. III-11 U.S. producers’ inventories ................................................................................................................ III-12 U.S. producers’ imports and purchases .............................................................................................. III-12 U.S. employment, wages, and productivity ......................................................................................