ITC rejects polychloroprene rubber review with 5-0 vote

Washington DC -- The International Trade Commission has overwhelmingly rejected a petition by Gates Corp. and others to institute a "changed circumstances" review of a 55-percent anti-dumping duty against polychloroprene rubber from Japan.

The vote was 5-0, with one commissioner not participating in the vote. Gates, Goodyear and about a dozen other rubber manufacturers argued that because Polimeri Europe SpA closed its CR plant in Europe and DuPont Performance Elastomers LLP (DPE) plans to shutter its Neoprene facility in Louisville, Kentucky, this represents a dangerous supply shortage of CR in the US.

However, DPE and CR importer Lanxess Corp. said that US supplies of their products are adequate to meet demand, and that recent price increases are due merely to spiraling raw materials prices. As is usual with the ITC, the commission gave no immediate reason for its vote but planned to publish a notice in the Federal Register explaining its reasoning.

Frank Schuchat, a Denver attorney representing Gates, said the company is very disappointed by the ruling. "We wanted DuPont [Performance Elastomers] to show how a company that enjoys a virtual monopoly over US manufacture of a certain material could claim to be materially injured by imports," Schuchat said.

A spokeswoman for DPE, however, said the company was pleased with the decision, and that the company always tries to work with customers to make sure their needs are being met. "We are not aware of any customer who is unable to get product from us," she said.

From Rubber & Plastics News (A Crain publication)