It appears that the spat between Whirlpool and LG isn’t quite over just yet and that the two are continuing their ongoing battles, the PR from Whirlpool follows after the break.
The Commerce Department issued a negative preliminary determination in its countervailing duty investigation which focuses on subsidies provided by the South Korean government to certain Korean refrigerator producers. This non-final determination comes four months into a 12-month investigation. Only two weeks ago, the Commerce Department expanded its investigations to include seven additional categories of subsidies to Korean refrigerator producers.
Today’s subsidy determination is separate and distinct from the Commerce Department’s antidumping investigation against certain Korean refrigerator producers, and is in no way indicative of the outcome of the antidumping case. A preliminary determination in the antidumping case is expected in October 2011.
“Whirlpool Corporation is not surprised by this preliminary decision, given the Korean producers’ bold resistance to providing adequate responses to the Commerce Department’s questionnaires,” said spokesperson Kristine Vernier. “We appreciate that the Commerce Department is conducting a thorough investigation and we’re confident it will require the Korean producers to provide complete and accurate responses as required under U.S. law. We look forward to the final determination by next March, once all the facts are placed on the record and all the subsidy programs have been fully investigated,” said Vernier.
Whirlpool filed antidumping and countervailing duty petitions on behalf of its 23,000 U.S. employees and the communities in which they work. Fair competition in the U.S. market will support significant investment and innovation in the production of high-end refrigerators in the United States and the U.S. jobs created by that production.
Whirlpool filed the petitions against bottom-mount refrigerators from South Korea in March 2011. Two Korean manufacturers, Samsung Electronics and LG Electronics, export their production to the United States from manufacturing facilities in Korea and Mexico. Whirlpool manufactures bottom-mount refrigerators in Amana, Iowa. In May 2011, the International Trade Commission (ITC) made a preliminary affirmative determination that imports from Korea and Mexico are causing material injury to the domestic industry. This unanimous decision by the ITC validated the action Whirlpool took to protect its employees and their communities. The subsidy investigation is separate from the parallel antidumping investigation and in no way bears upon the merits of the antidumping case. Final determinations in both the subsidy case and the separate antidumping case are expected by March 2012.
Key Dates:
March 30, 2011 – Whirlpool filed petitions (dumping and subsidies) with the U.S. Department of Commerce and the U.S. International Trade CommissionMay 13, 2011 – U.S. International Trade Commission unanimously votes in favor of beginning investigationAugust 30, 2011 – U.S. Department of Commerce released a preliminary decision regarding the subsidies investigationOctober, 2011 – U.S. Department of Commerce expected to release a preliminary decision regarding the dumping investigationMarch, 2012 – U.S. Department of Commerce expected to release final determinations for both investigations (assuming full extension)April, 2012 – U.S. International Trade Commission expected to issue its final vote May, 2012 – U.S. International Trade Commission expected to release its final determination May, 2012 – Final orders published, and duty deposits required, upon issuance of final affirmative determinations from U.S. Department of Commerce and U.S. International Trade Commission
