A key anti-dumping decision by the U.S. Department of Commerce (DOC) provides strong support for U.S. manufacturers, ruling that foreign competitors are dumping products into the U.S. market. The DOC's affirmative preliminary determination in the anti-dumping investigation of large residential washers from South Korea and Mexico is in response to a petition filed by Whirlpool Corporation (NYSE: WHR) in December 2011 to protect its 22,000 U.S. employees, the communities in which they work and U.S. consumers.
"The Commerce Department's preliminary finding shows that dumping is occurring, which supports the legal action we took on behalf of our employees and the U.S. appliance industry," said Whirlpool Corporation spokesperson Kristine Vernier. "Whirlpool is committed to building products in the regions where they are sold and investing in our U.S. manufacturing presence. Our investments will continue as long as we can compete on a level playing field, with all of our foreign competitors playing by the established rules."
As a result of today's ruling, foreign competitors, including Samsung and LG, will be required to pay cash deposits on washers imported to the U.S. starting in August 2012 at the rates found in the preliminary determination. The DOC announced cash deposit rates for Korean producers LG, Samsung, and Daewoo of 12.15 percent, 9.62 percent, and 79.11 percent, respectively. Cash deposit rates for Mexican producers Electrolux and Samsung are 33.30 percent and 72.41 percent, respectively.
The DOC also announced a 72.41 percent cash deposit rate for Whirlpool Corporation's Mexican operations; however, the company has discontinued shipping washers from Mexico for sale in the U.S. Therefore, Whirlpool will not pay cash deposits related to this ruling. As part of the company's strategic commitment to invest in U.S. manufacturing to supply the U.S. market, Whirlpool Corporation has made significant investments at its Clyde, Ohio, plant where it manufactures large residential washers. As a result of these investments, by 2013 nearly 100 percent of the washers Whirlpool sells in the U.S. will be manufactured in the U.S.
The anti-dumping investigation is ongoing, and the DOC will undertake an in-depth audit of the information provided by Samsung and LG, before issuing the final determinations in December 2012. Final orders are expected in February 2013 upon issuance of final affirmative determinations from the Commerce Department and the U.S. International Trade Commission.
For additional information and to view the petition, please visit http://whirlpoolcorp.com/facts.
December 30, 2011 Whirlpool filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission
January, 2012 U.S. Department of Commerce released notice of initiation
February, 2012 U.S. International Trade Commission released preliminary determination
May, 2012 U.S. Department of Commerce released preliminary countervailing duty determination
July 2012 U.S. Department of Commerce releases its preliminary anti-dumping determination
August 2012 Foreign competitors, including Samsung and LG, will be required to pay cash deposits on washers imported to the U.S.
December 2012 U.S. Department of Commerce expected to release its final anti-dumping and countervailing duties determinations
February 2013 U.S. International Trade Commission expected to release its final determination regarding injury to the domestic industry caused by the dumped and subsidized imports
February 2013 Final orders published upon issuance of final affirmative determinations from U.S. Department of Commerce and U.S. International Trade Commission
About Whirlpool Corporation
Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of more than $19 billion in 2011, 68,000 employees, and 65 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly every country around the world. Additional information about the company can be found at http://www.whirlpoolcorp.com.