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HULAMIN LIMITED - US Anti-Dumping Petition against Imports of Common Alloy Sheet

Release Date: 30/04/2020 15:06
Code(s): HLM     PDF:  
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US Anti-Dumping Petition against Imports of Common Alloy Sheet

HULAMIN LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1940/013924/06
JSE Code: HLM
ISIN: ZAE000096210
(“Hulamin” or “the Company”)


US ANTI-DUMPING PETITION AGAINST IMPORTS OF COMMON ALLOY SHEET

Hulamin sells a range of products into the United States (“US”), including common alloy sheet. These
products have been supplied into the US for over 20 years. For the three years ended
31 December 2019, Hulamin’s sales of common alloy sheet into the US amounted to approximately
12% of the total sales of Hulamin Rolled Products.

The total US common alloy sheet market is approximately 2 million tons per annum. Domestic US
producers have historically supplied less than 65% of the market. Hulamin’s share of this market is
less than 2%.

On 9 March 2020, a petition was filed in the US by domestic US producers against imports of
aluminium common alloy sheet from 18 countries, including South Africa. The petition claims
material harm to the US aluminium industry and seeks tariff relief in the form of anti-dumping and
countervailing duties. Investigation of the alleged claims is carried out by two departments within
the US government namely the International Trade Commission (“ITC”) and the Department of
Commerce (“DoC”).

The ITC has completed its preliminary investigation. The final portion of the ITC’s investigation will
be initiated should the DoC issue an affirmative decision in its preliminary investigation, which is
expected on or about 16 August 2020. Any final investigation is expected to be completed by
December 2020, which would be followed, if applicable, by an anti-dumping duty order.

Hulamin strongly contends that it has not dumped its product into the US nor caused material harm
to the domestic industry and has appointed local counsel in the US to support this contention.
Hulamin will, however, cooperate fully with the ITC and DoC processes.

If duties are ultimately imposed on product supplied by the 18 countries named, it is likely that the
rates applied could vary between the different countries. Hulamin is accordingly unable to
determine at this stage what the impact of any duties imposed might be.

Hulamin will continue to sell other products like heat treated plate and can stock in the US as these
products are not part of the investigation. In addition, Hulamin will take advantage of continued
demand for its can stock products in Europe, Australia and the Middle East.

Shareholders are reminded that, in November 2018, Hulamin applied to the South African
International Trade Administration Commission (“ITAC”) for import duties on aluminium rolled
products imported into South Africa. We await notification of the outcome of this application from
ITAC.


Pietermaritzburg
30 April 2020

Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 30-04-2020 03:06:00
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