Saccharin from China - USITC

Changes in Character of Operations and Capacity ProjectionsPMC reported operational changes in existing facilities during the period of review. ***. 8***. 9***. 10***. 11***. 12The Commission requested PMC’s comments on a PMC Science-Tech Industries (Nanjing) Co.,Ltd. 2007 web release in which it was indicated that a joint venture between PMC Global and a Chinesefirm was “brewing” for production of 15,000 metric tons per year of saccharin, or about two-thirds ofworldwide saccharin consumption. 13 PMC responded that it had made no investment at any joint venturein China with any saccharin producer. 14 PMC further stated that it had never been involved in any jointventure to produce saccharin in China, and as a matter of Chinese law, the Chinese saccharin industry isidentified as an industry in which foreign investment has been “restricted” since 2002, at least through theend of 2007. 15PMC entered into a business relationship ***. 16 PMC reported that the decision to ***. 17Public and business proprietary information sources were also searched to obtain informationconcerning events that took place at PMC during the period of review. Sources include newspaperarticles, consultancy reports, questionnaire responses, and written submissions to the Commission. AMay 2006 newspaper article reported that PMC announced plans to eliminate most of its 138 employees,notifying state officials it will permanently terminate 103 employees - 23 salaried and 80 hourly workers -starting around July 3, 2006. 18 In its petition to The Department of Labor for Trade AdjustmentAssistance (“TAA”) and Alternative Trade Adjustment Assistance (“ATAA”) for its “approximately 115”workers that had been or will be laid off, PMC provided the reason for worker eligibility for TAA andATAA certification as, “unable to compete on standardized products that are mass produced. As a resultof this inability to compete, our major products were outsourced to foreign producers”. 19***. 20***. 218PMC’s U.S. producers’ questionnaire response, section II-2. Post hearing, PMC was requested to provide anynotification documentation provided to its customers prior to July 2006 concerning possible disruption of supply dueto the plant shutdown for reengineering. ***. PMC’s posthearing brief, exh. 3, p. 11.9Ibid.10PMC’s U.S. producers’ questionnaire response, section II-2, attachment B.11Ibid.12Ibid.13Transcript, pp. 54-55.14Transcript, pp. 55-56.15PMC’s posthearing brief, exh. 1, p. 9, and exhs. 6, 13, 14, and 15.16Ibid., exh. 1, p. 42.17Ibid., exh. 1, pp. 42-43.18Request for Changed Circumstances Review and Revocation of Antidumping Duty Order Issued in Saccharinfrom The People’s Rebublic of China, exhibit A, “Saccharin Maker Cuts 130 Jobs,” The Enquirer, May 11, 2006,Cincinnati.com.19Ibid., exhibit C.20***.21Correspondence to Commission staff from ***.III-2