TLALNEPANTLA DE BAZ, Mexico--(BUSINESS WIRE)--Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”) announces that the U.S. International Trade Commission today found that imports of R-134a are causing or threatening to cause material injury to the U.S. industry producing R-134a. Today’s decision follows a year-long investigation by the U.S. Department of Commerce, which found that imports of R-134a from China were being dumped in the U.S. market at prices below fair value. On February 22, 2017, Commerce announced that Chinese R-134a imports were being dumped and prescribed antidumping duties ranging from 148.79 percent to 167.02 percent.
Today’s vote by the Commission means that antidumping duties ranging from 148.79 percent to 167.02 percent of the value will be imposed on all imports of R-134a from China.
The American HFC Coalition believes that this decision is fully supported by the facts. The industry developed R-134a to succeed earlier-generation refrigerants without any negative impact on the ozone layer. The industry invested substantial sums to manufacture R-134a in the United States for automotive air-conditioning, stationary air-conditioning, and other applications. Yet, imports from China, sold at prices far below fair value, increased by an astonishing 100 percent from 2015 to 2016, and continued to increase even after the antidumping petition was filed. As a result of the dumped imports, the U.S. industry has suffered persistently low price levels and poor operating results.
The imposition of antidumping duties is a positive step to restore conditions of fair trade in this market. With these duties in place, the R-134a U.S. manufacturers believe they can earn an adequate return on investment and continue to supply the market.
Mexichem is a global leader in plastic piping and one of the world’s largest chemical and petrochemical companies. It has more than 50 years of experience. The Company contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, datacom and water management, among others. With operations in over 30 countries, 120 facilities worldwide and more than 18,000 employees, Mexichem has the rights to produce fluorspar in two mines in Mexico, as well as 8 formation academies and 16 R&D lab. Operations are divided into two value chains and three business units: Ethylene Chain: Vinyl and Fluent Business and Fluor Value Chain, which includes Fluor business group. Mexichem has annual revenues of US$5.35 billion and has been traded on the Mexican Stock Exchange for more than 30 years. The company is member of the Mexican Stock Exchange Sustainability Index and the sustainability emerging markets index FTSE4Good.
In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. The final results may be materially different from current expectations due to several factors, which include, but are not limited to, global and local changes in politics, the economy, business, competition, market and regulatory factors, cyclical trends in relevant sectors; as well as other factors that are highlighted under the title “Risk Factors” on the annual report submitted by Mexichem to the Mexican National Banking and Securities Commission (CNBV). The forward-looking statements included herein represent Mexichem’s views as of the date of this press release. Mexichem undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.”
Mexichem has implemented a new Code of Ethics that rules its relationships with its employees, clients, suppliers and general groups. Mexichem’s Code of Ethics is available for consulting in the following link: http://www.mexichem.com/Codigo_de_etica.html Additionally, according to the terms contained in the Securities Exchange Act No 42, Mexichem Audit Committee established a mechanism of contact, which allows that any person that knows the unfulfilment of operational and accounting records guidelines and lack of internal controls of the Code of Ethics, from the Company itself or from the subsidiaries that this controls, file a complaint which is anonymously guaranteed. The whistleblower program is facilitated by a third party. The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem and contact e-mail is email@example.com. Mexichem’s Audit Committee will be notified of all complaints for immediate investigation.