Saccharin from China - USITC

statement challenging PMC’s status as a domestic producer of saccharin. 27 In its final comments, PMCdisputes *** assertions and claims that it qualifies as a domestic producer of saccharin. 28Two production processes are currently in use worldwide to produce saccharin: the Maumeeprocess, a continuous-production method that was developed in the United States and that has been useddomestically during the review period, and the older Remsen-Fahlberg process, a batch-productionmethod using different starting materials, which is the predominant method used worldwide. 29 Untilmid-2006, PMC used the continuous Maumee process at its sole production facility located inCincinnati, Ohio. 30 As discussed below, PMC modified its production process for saccharin and nolonger uses the continuous Maumee process; instead, PMC’s new process for producing saccharininvolves mostly post-Maumee refining and is currently being done on a batch (not continuous) basis. 31According to PMC, the important advantages of the Maumee process (relative to the Remsen-Fahlberg process) include the following: ***. 32Prior to mid-2006, the Maumee process used by PMC used methyl anthranilate (MA) and sulfurdioxide as key raw materials. In mid-2006, PMC modified its Maumee production process forsaccharin; according to PMC, this reengineering was intended to avoid using or producing certainhazardous chemicals (e.g., chlorine, sulfur dioxide, and ammonia), and therefore to make its saccharinproduction process safer and more environmentally friendly. 33 According to PMC, this process alsoallows it to manufacture saccharin more efficiently and more cost-effectively. 34 PMC states that its newMaumee process converts *** into saccharin, and that *** 35 *** 36 PMC worked in conjunction with*** 37 and in 2008, *** 38Based on the aforementioned six-factor test we generally consider in assessing whether a firmengages in sufficient production-related activities in the United States to be considered a domesticproducer, we find that PMC qualifies as a domestic producer, although the issue is close.Capital investment. PMC’s capital expenditures were relatively low in this five-year review,increasing from *** in 2003 to $*** in 2008. 39 Nevertheless, PMC’s total capital expenditures duringthe five-year review period were approximately $*** below its total capital expenditures during theoriginal three-year period of investigation. 40 PMC also had *** capital expenditures in 2003, 2006, and27*** Statement at 8-13.28See e.g., PMC Final Comments at 4-5 n.1.29CR at I-14; PR at I-10.30CR at I-15; PR at I-11.31Both the Maumee continuous process and the Remsen-Fahlberg process are used in China. CR at I-14.32CR at I-14; PR at I-10.33PMC Prehearing Br. at 14.34See e.g., PMC Posthearing Br, Exh.1 at 34-35.35CR at I-15; PR at I-11.36PMC Final Comments at 4-5 n.1.37CR at I-15; PR at I-11.38CR at I-15; PR at I-11.39PMC’s capital expenditures increased from *** in 2003 to *** in 2004 to *** in 2005, fell to *** in 2006 and2007, and then increased to *** in 2008. CR/PR at Table C-1. In the original investigation, PMC’s capitalexpenditures declined substantially during the period, falling from *** in 2000 to *** in 2002. Original CR/PR atTable VI-4.40CR/PR at Table C-1; Original CR/PR at Table VI-4.7