Aramid Fiber Formed of Poly Para-Phenylene …

1 Aramid Fiber Formed of Poly Para-Phenylene Terephthalamide From the Netherlands Investigation No. 731-TA-652 (Preliminary) 'ublication 2672 August 1993 International Trade Washington, DC 20436 International Trade Commission COMMISSIONERS Don E. Newquist, Chairman Peter S. Watson, Vice Chairman David B. Rohr Anne E. Brunsdale Carol T. Crawford Janet A. Nuzum Robert A. Rogowsky, Director Office of Operations Staff assigned: Mary Messer, Investigator William Shpiece, Economist Linda Shelton, Industry Analyst Chandrakant Mehta, Accountant/Financial Analyst James Lyons, Attorney George Deyman, Supervisory Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436.

2 - ; International Trade Washington, DC 20436 Aramid Fiber Formed of Poly Para-Phenylene Terephthalamide From the Netherlands Publication 2672 August 1993 CONTENTS .. Determination and views of the Commission .. Determination .. Views of the Commission .. Information obtained in the investigation .. Introduction .. Product history .. _.. _.. _ .. Related Commission investigation .. The product .. : .. ' .. ; .. Uses .. _.. _ .. :Substitute .. ~ .. Production .. ~ .. _ .. "" tariff treatment .. The nature and extent of alleged sales at LTFV .. The market .. producer .. importers .. Channels of distribution~ .. _.. Apparent U'; S .. consumption.

3 , .. , .._ .. Consideration of alleged material injury .. ~ .. capacity and production .. '.. p roducer' s shipments .. _ .. _." .. producer's inventories. , .. , .. employment, wages, and productivity .. : .. : .. : .. Financial experience of DuPont .. -..' .. PPD-T Aramid Fiber operations .._ .. Inves:tment in productive facilities .. _Capital expenditures .. Research and development .., .. ; .. Capital and investment .. ,_.'.. : .. :. Consideratio n of the question of threat of material injury .. importers' inventories .._ .. ~ ..' .. Ability of producers in the Netherlands to generate exports and the .availability of export markets other than the United States.

4 Consideration of the causal relationship between imports of the subject merchandise and the alleged material injury .. U. S . imports .. ; .. ' market penetration by the subject imports .. Prices .. ,; .. ,_ .. ; .. : . ; .. Marketing .. Questionnaire price data .. ,., ..' ..~ Price trends .. : . :.. Pric e comparisons .. ; .. Exchange rates .. : .. : .. Lost sales and lost revenues .. 1 3 5 I-1 I-3 I-3 I-5 I-5 I-5 I-6 I-8 I-10 I-11 I-12 I-13 I-13 I-15 1-15 I-16 I-17 I-17 I-18 I-18 I-19 I-19 I-20 I-21 I-21 I-21 I-22 I-22 I-24 I-24 I-25 I-25 I-26 I-27 I-27 I-29 I-30 I-32 I-32 I-32 ii CONTENTS Appendixes A. Federal Register notices .. ,.. A-1 B. List of participants in the conference.

5 B-1 C. Summary data .. :.. C-1 D. Summary data concerning yarn, staple, pulp, and other forms of PPD-T Aramid Fiber .. D-1 E. Data concerning u .s. PPD-T Aramid Fiber pulp and staple subcontractor operations.. E-1 F. DuPont's shipment data, by submarket categories .. F-1 G. DuPont's discussiori of the advantages of Kevlar vis-a-vis the advantages of the alternative fibers .. ;.. G-1 Figures 1. PPD-T Aramid Fiber : conslimption, by end uses, 1992., .. I-6 2. PPD-T Aramid Fiber : shipments of product, shipments of product from the Netherlands, and apparent consumption, 1990-92 .. I-16 3. PPD-T Aramid Fiber : Shares of the quantity and value of apparent consumption held by the United States and the Netherlands, 1990-92 and January-March 1993.

6 I-27 4. Average delivered selling prices of PPD-T ~ramid Fiber product 1, by quarters, January 1990-June 1993 .. I-30 5. Average delivered selling prices of PPD-T product 2 produced in the United States and imported from the Netherlands, by quarters, January 1990-June 1993 .. I-30 6. Average delivered selling prices of PPD-T Aramid Fiber product 3 produced in the United States and imported from the Netherlands, by quarters, January 1990-June 1993 .. I-31 7. Average delivered selling prices of PPD-T Aramid Fiber product 4 produced in the United States and imported from the Netherlands, by quarters, January 1990-June 1993 .. '. 1-31 8. Average delivered selling prices of PPD-T Aramid Fiber product S produced in the United States and imported from the Netherlands, by quarters, January 1990-June 1993.

7 1-31 9. Average delivered selling prices of PPD-T Aramid Fiber product 6 produced in the United States and imported from the Netherlands, by quarters, January 1990-June 1993 .. I-31 10. Average delivered selling prices of PPD-T Aramid Fiber product 7 produced in the United States and imported from the Netherlands, by quarters, January 1990-June 1993 .. 1-31 11. Average delivered selling prices of intermediate-modulus PPD-T Aramid Fiber product 8 produced in the United States and imported from. the Netherlands and high-modulus PPD-T Aramid Fiber product 8 produced in the United States, by quarters, January 1990-June 1993 .. 1-32 C-1. Salient data for PPD-T Aramid Fiber .

8 , .. C-3 iii CONTENTS Tables :.~i 1. PPD-T Aramid Fiber :. Maj or end-use applications and substitute, , products: .. , .. ~ .. : .. -.. ' .. ; ..:.' .. :.. 1-9 2. PPD-T Aramid Fiber :. U:S. shipments of , shipments of imported product, and apparent consumption,, .~ " :March 1992, and January-March 1993 .. : .. : .. : 1-16 3. PPD-T Aramid Fiber : shipments of product, shipments of imported product, and apparent U . S. consumption, by end uses, 1990-92, January-March 1992, and January-March 1993: .. ,~.:,: 1-16 4_. PPD-T Aramid Fiber : capacity, production, and capacity utilization, 1990:-92, January-March , and ..' .. 1-17 5. PPD-T Aramid Fiber : Shipments of ;-:produced product, 1990-92.

9 : January-March 1992, and January~March 1993 ..' .. '.. ; .. 1-18 6. PPD-T Aramid Fiber : .. producer's end-of-period inventories ,: 1990-92, ; and January-March 1993.<, .. -.. 1-18 7. Average number of pr~duction .and .workers producing PPD,.T Aramid Fiber , hours worked, wages and -compensation paid 8. 9. 10. 11. 12. 13. such employees, and hourly wages., productivity,. and unit labor . costs, 1990-92, January-March 1992, and January-March 1993 .. '.. 1-19 Income-and-loss experience of DuPont on its PPD-T Aramid Fiber : , calendar years 1990-92, Japuary-March 1992, and January-March 1993 .. ~ ..' .'.: ..- .. ' .. 1-20 Maj or components of cost 'of goods sold of DuPont on its P,PD-T.

10 Aramid Fiber operations, calendar years 1990-92, ,. 1992, and January;; 1993'.. ~ ..,.: .: .. ' .. 1-20 Major components of selling, general, and _adiniriistrative expen~es of DuPont on its PPD-T Aramid Fiber .operations, . , 1990-92, January-March 1992, and January-March: 1993 ..' .. '" 1-20 -Value of assets and return on assets of DuPont on its U:S.' PPD-T . Aramid Fiber operations as. of December 31, 199.(J-92, March 31, 1992, and March 31, 1993 .. : .. , .. : .. ; .; .. : ..-:: .. I-21 PPD-T Aramid Fiber : End-of-period inventories of product 'produced in the Netherlands, 1990-92, January-March 1992 , and January-March 19 9 3 .. ; .. I -24 '~.)