U.S. Paper Manufacturers File Case Against China, Indonesia, Other Countries for Illegal Trade Practices

WASHINGTON, DC—Janauary 21, 2015—Four U.S. paper manufacturers and the United Steelworkers (USW) announced that they have filed antidumping petitions against unfairly priced imports of certain types of uncoated paper in sheets from China, Indonesia, Brazil, Portugal and Australia, and countervailing duty petitions against subsidized imports from China and Indonesia with the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC). The four manufacturers are Domtar Corp., Packaging Corp. of America (PCA), Finch Paper and P.H. Glatfelter Co.

The petitions ask the agencies responsible for investigating illegal trade practices to impose duties to offset the dumping of certain uncoated paper from all five countries and to offset the subsidies on imports from China and Indonesia. The petitions cover all uncoated paper in sheets (including cut-size and folio), weighing between 40 and 150 gsm, and having a GE brightness level of 85 or higher.

The antidumping and countervailing duty petitions indicate that imports of these products from the five targeted countries increased 44 percent from 2011 to 2013 and another 40 percent from January-September 2013 to January-September 2014. The imports increased despite declining U.S. demand. During that time, shipments of certain uncoated paper from domestic manufacturers declined by approximately 8 percent from 2011 to 2013, and another 9 percent from January-September 2013 to January-September 2014.

"Since 2011, eight U.S. mills that produce uncoated paper have been forced to close in the face of increasing, unfairly traded imports, resulting in the loss of thousands of paper jobs," said USW International President Leo W. Gerard. "The Labor Department has certified workers at seven of these mills to receive Trade Adjustment Assistance, after concluding that imports 'contributed significantly' to these closures. Foreign predatory practices targeting America’s producers and workers, including tens of thousands of our members, are the root cause of production declines and job losses."

John D. Williams, president and CEO of Domtar, also commented: "Competition makes us a better, stronger company, but it must be fair competition. This petition asks the government to look at the facts and make any adjustments required to establish a level playing field."

Mark Kowlzan, CEO of Packaging Corp. of America (PCA), also noted: "Foreign paper manufacturers are taking advantage of the unfair trade practices of dumping and subsidies to undermine U.S. manufacturers."

Under the antidumping and countervailing duty statutes, the ITC is expected to make a preliminary injury determination in early March 2015. The Department of Commerce is expected to issue preliminary determinations in the countervailing duty investigations in April 2015 (June if extended) and in the antidumping duty investigations in June 2015 (August if extended). All of the investigations will be completed within 13 to 14 months.

About the United Steelworkers (USW)
The USW represents 850,000 workers in North America employed in many industries that include metals, rubber, chemicals, paper, oil refining and the service and public sectors.

About Domtar Corp.
Domtar Corp. designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The company employs approximately 10,000 people.

About Packaging Corporation of America (PCA)
PCA is the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated freesheet paper in North America. PCA operates eight paper mills and 100 corrugated products plants and related facilities.

About Finch Paper
Finch Paper is a leading, privately-owned and vertically integrated paper manufacturer specializing in high-bright, uncoated papers for North American printing and converting markets. Using advanced manufacturing systems, Finch produces a broad portfolio of opaque, text and cover and digital papers for multi-press environments, including recognized brands such as Finch Fine, Finch Opaque, Finch ThruPut Wove and Finch Inkjet Pi.

Finch Paper was the first integrated paper manufacturer in the United States to receive both the Forest Management and Chain-of-Custody certifications from the Forest Stewardship Council and Sustainable Forestry Initiative. Finch is one of only a few paper companies that continues to manage forests. Finch papers are made using two-thirds renewable energy produced by on-site hydroelectric and cogeneration facilities and has been a responsible, sustainable New York State manufacturer for more than a century.

About P.H. Glatfelter Co.
Glatfelter is a global supplier of specialty papers and fiber-based engineered materials, offering innovation, technical expertise, and world-class service. Headquartered in York, PA, U.S. operations include facilities in Spring Grove, PA, and Chillicothe and Fremont, OH. International operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines, and sales and distribution offices in Russia and China. Glatfelter’s sales approximate $1.8 billion annually and its common stock is traded on the New York Stock Exchange under the ticker symbol GLT.

Source: United Steelworkers.