The United States International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of synthetic indigo from China that are allegedly sold in the United States at less than fair value.

Chairman Lynn M. Bragg, Vice Chairman Marcia E. Miller, and Commissioners Carol T. Crawford, Jennifer A. Hillman, Stephen Koplan, and Thelma J. Askey voted in the affirmative.

As a result of the ITC's affirmative determination, the U.S. Department of Commerce will continue to conduct an antidumping investigation of imports of synthetic indigo from China, with its preliminary antidumping determination due on or about December 7, 1999.

The Commission's public report Synthetic Indigo from China (Investigation No. 731-TA-851 (Preliminary), USITC Publication 3222, August 1999) will contain the views of the Commission and information developed during the investigation.

Copies of the report are expected to be available after September 13, 1999, 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.

Product Description:

The merchandise that is the subject of this investigation is synthetic indigo and certain derivatives thereof designated commercially as "Vat Blue 1" (hereinafter referred to as indigo). Indigo is a vat dye with a characteristic deep blue color that has good resistance to color degradation by light or heat. A unique characteristic of indigo is that it fades evenly when washed. Indigo dyes are utilized chiefly as fiber and fabric dyes, largely in connection with the manufacture of denim products. About 98 percent of indigo is used in the production of denim. A very small percentage of indigo dyes are used in the food industry and in other applications.

Status of Proceedings:

1.   Type of investigation: Preliminary antidumping.
2.   Petitioner: Buffalo Color Corporation, Parsippany, NJ, and the United Steelworkers of
       America, AFL-CIO/CLC.
3.   Preliminary investigation instituted by the USITC: June 30, 1999.
4.   USITC conference: July 22, 1999.
5.   USITC vote: August 13, 1999.
6.   USITC determination to the U.S. Department of Commerce: August 16, 1999.

U.S. Industry:

1.   Number of producers in 1999:  One.
2.   Location of producer's plant:  Buffalo, New York.
3.   Employment of production and related workers in 1998: (1).
4.   Apparent U.S. consumption in 1998:  (1).
5.   Ratio of total U.S. shipments of imports to total U.S. consumption in  1998:  (1).

U.S. Imports:

1.   From the subject country during 1998:  (1).
2.   From other countries during 1998:  (1).
3.   Leading source during 1998:  China (in terms of total value).

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