US: Feds’ ruling helps local saw maker Diamond Products

19/10/2011 12:00 - 372 Views

ELYRIA — The jobs of about 300 employees at Diamond Products got a little safer following a U.S. Department of Commerce ruling that the company, which makes diamond saw blades, faced unfair competition from under-priced imports from China.

The ruling upholds a preliminary determination on June 30 that requires a company called Heibe Jkai to pay anti-dumping duty deposits.

The Chinese company will still be able to sell tools in the United States, but the duty payments hopefully will level the field for the Elyria-based company, which manufactures diamond saws for cutting concrete, said Andy Jedick, vice president and general manager.

The ruling was hailed by the offices of U.S. Sens. Sherrod Brown, D-Avon, and Rob Portman, R-Cincinnati, who had worked on the issue.

Jedick said it was a long fight, and the senators assisted attorneys for Diamond Products along the way.

“It was proven in 2006 there was dumping going on,” Jedick said. “That was the clear intent — to come in and take over the market.”

Approximately 300 people work at Diamond Products, which also employs about 25 temporary workers, Jedick said.

In press releases, Brown and Portman said trade enforcement helps protect Ohio jobs and level the playing field.

“Time and time again, countries like China have flouted trade laws, which has made it difficult for our manufacturers to succeed,” Brown said. “This decision is another victory for Ohio workers against foreign interests, and I applaud the Commerce Department for standing with Elyria workers.”

Portman, former U.S. trade representative in the administration of President George W. Bush, said Ohio companies need to be treated fairly in a global economy.

“American companies like Diamond Products should not be asked to compete on an uneven playing field caused by Chinese subsidies,” Portman said.

In 2009, the Commerce Department put a dumping order in place to protect workers at Diamond from unfair Chinese exports to the U.S. that were being sold drastically below fair value — undercutting American producers.

As a result, the Commerce Department ruled that certain Chinese manufacturers should pay a tariff rate of 164 percent on products they export to the U.S.

Following this ruling, a large Chinese exporter of saw blades merged with another Chinese company in an effort to pay a lower tariff rate.

Portman sent a letter to the Commerce Department expressing his concern with such efforts, and the Commerce Department’s final ruling requires that the merged company must pay the higher tariff rate of 164 percent — a victory for Diamond Products.

October 18th, 2011

By Cindy Leise

Source: northcoastnow.com