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NEWS RELEASE 98-054; JULY 24, 1998 July 24, 1998
News Release 98-054
Inv. No. 751-TA-17-20

IMPORTS OF TITANIUM SPONGE FROM JAPAN, KAZAKHSTAN, RUSSIA, AND UKRAINE
WOULD NOT LIKELY LEAD TO INJURY OF AN U.S. INDUSTRY
IF ANTIDUMPING DUTY ORDERS ARE REVOKED, SAYS ITC

The United States International Trade Commission (ITC) today made negative determinations in its review investigations of titanium sponge from Japan, Kazakhstan, Russia, and Ukraine.

The negative determinations resulted from a 3-0 vote. Chairman Lynn M. Bragg, Vice Chairman Marcia E. Miller, and Commissioner Carol T. Crawford voted in the negative. The negative determinations mean that the ITC found that revocation of the antidumping duty orders covering imports of titanium sponge from Japan, Kazakhstan, Russia, and Ukraine is not likely to lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time.

As a result of the ITC's negative determinations, the U.S. Department of Commerce will revoke the existing antidumping duty orders on titanium sponge from Japan, Kazakhstan, Russia, and Ukraine.

Today's vote under Section 751(b) of the Tariff Act of 1930 is the result of a request for the Commission to review its affirmative determination in Investigation No. AA1921-51 as it applied to imports from Russia. On July 23, 1968, the U.S. Tariff Commission determined that an industry in the United States was materially injured by reason of imports of titanium sponge from the U.S.S.R. that the Treasury Department had determined were sold in the United States at less than fair value; accordingly, antidumping duties were imposed on such imports. Further, on November 7, 1984, the ITC determined that an industry in the United States was threatened with material injury by reason of imports of titanium sponge from Japan that the Commerce Department had determined were sold in the United States at less than fair value; accordingly, antidumping duties were imposed on such imports. (In 1992, the Department of Commerce, in response to the division of the former Soviet Union into 15 independent states, changed the original antidumping finding against the U.S.S.R. to 15 separate antidumping duty orders covering the republics of the former Soviet Union. Commerce has since revoked all of the orders except those on imports from Kazakhstan, Russia, and Ukraine.)

The Commission's public report Titanium Sponge from Japan, Kazakhstan, Russia, and Ukraine (Investigations Nos. 751-TA-17-20, USITC Publication 3119, August 1998) will contain the views of the Commission and information developed during the investigations. Copies of the report are expected to be available without charge after August 10, 1998, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.


UNITED STATES INTERNATIONAL TRADE COMMISSION
Office of Industries
Washington, DC 20436

FACTUAL HIGHLIGHTS

Titanium Sponge from Japan, Kazakhstan, Russia, and Ukraine
(Investigations Nos. 751-TA-17-20)

Product Description: Titanium sponge is a porous, brittle form of titanium, a highly ductile metal which has a high strength-to-weight ratio. Titanium has low thermal and electrical conductivity and is one of the most corrosion-resistant structural metals. Sponge is an intermediate product used to produce titanium ingot, which in turn is used to make slab, billet, bar, plate, sheet, and other titanium mill products. Because of its high strength-to-weight ratio, titanium and its alloys are widely used in both aerospace and nonaerospace applications. Aerospace applications include use in gas turbine engines for both military and commercial aircraft (where use of titanium results in reduced engine weight while maintaining strength), airframes, and in various applications in missiles and space vehicles. In most aircraft engines, titanium-based alloy parts account for 20-30 percent of engine weight. Nonaerospace applications include use in specialty chemical, pulp and paper, oil and gas, marine, medical, and consumer goods industries. Aerospace uses for titanium constitute the largest market for titanium, with commercial and military aerospace applications consuming 65 percent of titanium mill product shipments in 1997.

Status of Proceedings:
     1. Type of investigation: Changed circumstances review.
     2. Petitioner: TMC Trading International, Ltd. and TMC USA, Inc.
     3. Investigations instituted by USITC: March 23, 1998.
     4. Public hearing: June 8, 1998.
     5. USITC vote: July 24, 1998.
     6. USITC notification of Department of Commerce: August 6, 1998.

U.S. Industry:
     1. Number of domestic producers in 1997: Three.
     2. Location of producers' plants: Nevada, Oregon, and Utah.
     3. Employment of production and related workers in 1997: (1)
     4. U.S. producers' shipments of titanium sponge in 1997:  (1)
     5. U.S. consumption, 1997:  (1)
     6. Ratio of quantity of total imports from all sources to U.S. consumption:  (1)

U.S. Imports:
     1. Quantity of  imports in 1997:  (1)
     2. Leading sources of imports in 1997 (quantity): Japan and Russia.


(1) Withheld to avoid disclosure of confidential business information.

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