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February 28, 2001

Domestic Manufacturers Bring 'Anti-Dumping'
Complaint Against Imports of Chinese Replacement Windshields

Apogee, PPG, and Safelite Seeking Relief By Petitioning the US Dept. of Commerce & The U.S. International Trade Commission.

PPG Press Release:

    PPG Industries and two other domestic makers of automotive replacement (ARG) windshields today petitioned for relief from dumping of replacement windshields imported from China.

    "The U.S. replacement windshield industry has sustained significant injury from rapidly increasing imports of very low-priced ARG windshields from China," said Garry A. Goudy, PPG vice president of auto replacement glass. "One U.S. producer has ceased operation, and the rest have experienced substantial financial harm," he said.

    PPG, Safelite Glass Corp. and Viracon/Curvlite petitioned the U.S. Commerce Department and International Trade Commission jointly, charging that Chinese producers have caused them material injury by importing ARG windshields at prices below fair value.

    "We believe that the petitioning manufacturers are as efficient as anyone in the industry, but we do not believe that anyone can produce and ship replacement windshields at prices we're seeing from China without losing money," Goudy said.

    "If China's domestic market were open and subject to the same profit discipline we are," he continued, "we could take the competition to their market. Unfortunately, their market is closed to imports and their production distorted by central planning, and we are the victims. Our petition is the remedy provided by law and international agreements to restore competitive market balance when foreign producers dump products in the U.S."

    The two U.S. agencies are expected to review the petition and investigate its allegations which, if confirmed, would result in imposition of antidumping duties on ARG windshields imported from China. Such investigations usually take about a year, but preliminary duties could be imposed within 160 days.

Apogee Press Release:

    Apogee Enterprises, Inc. (Nasdaq:APOG), together with Safelite Glass Corporation and PPG Industries, Inc., today petitioned for relief from dumping of automotive replacement glass (ARG) windshields imported from the People's Republic of China.

    "We are bringing this action to obtain relief under our trade remedy laws from significant injury that is being caused by rapidly increasing imports of unfairly low-priced ARG windshields from China," said Patricia A. Beithon, corporate secretary and general counsel. "In the past three years, we have seen some U.S. producers ceasing operations, while others, including Apogee, have sustained substantial financial harm," she said.

    Apogee, Safelite and PPG petitioned the U.S. Department of Commerce and the U.S. International Trade Commission jointly, alleging that Chinese producers have caused them material injury by importing ARG windshields at prices so low they violate U.S. law and international trade rules.

    "This is a mature market, with demand growing at a relatively slow pace. The imports from China last year were more than 50 percent higher than in 1999, and several times higher than three years ago. We believe the companies that are filing this petition are as efficient and competitive as anyone in our industry. We don't believe, however, that any company can produce and ship replacement windshields at the low prices we're seeing from China without losing money," Beithon commented.

    "Let's be clear. This isn't a matter of the U.S. industry not being able to compete with foreign producers who are simply more efficient or competitive. No industry can sustain the adverse effects that result from such rapid increases in unfairly low-priced product without experiencing substantial economic harm. U.S. trade remedy laws and international trade agreements condemn the kinds of practices engaged in by Chinese ARG windshield producers and exporters. We are exercising our right under those laws and agreements to restore fairness to our market."

    The two U.S. agencies are expected to review the petition and investigate its allegations which, if confirmed, would result in imposition of antidumping duties on ARG windshields imported from China. Antidumping investigations usually take about a year to complete, but preliminary duties could be imposed within 160 days from the filing of the petition.

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source: Businesswire Press Releases