Elkay receives favorable preliminary decision in Chinese sink manufacturer subsidy case

OAK BROOK ILL. — Today, the United States Department of Commerce issued its preliminary determination that subsidies provided by the Government of China to Chinese manufacturers of drawn stainless steel sinks violate U.S. trade laws. The investigation was initiated earlier this year in response to petitions filed by Elkay Manufacturing to protect its 3,500 U.S. employees and the communities in which they work. As of the date of the preliminary determination, US Customs will instruct all importers of drawn stainless steel sinks imported into the United States to post cash deposits in the amount of the preliminary countervailable subsidy rate.

In addition to the subsidy allegations against the Chinese government, the petitions also allege that Chinese manufacturers are dumping drawn stainless steel sinks into the United States at prices that are 23% to 77% below fair value. Commerce will make its preliminary determination of the anti-dumping margins on Sept. 27, 2012. 

"Elkay is pleased with this favorable preliminary decision, as it confirms that the Chinese government has been providing illegal subsidies to Chinese manufacturers of drawn stainless steel sinks and takes the first step in counteracting these subsidies" said Timothy Jahnke, CEO of Elkay. "We look forward to the Commerce's preliminary determination with respect to the anti-dumping petition in September and imposition of additional tariffs. With the imposition of subsidy and antidumping duties, we believe U.S. manufacturers of stainless steel sinks will be able to compete with Chinese manufacturers on a level playing field, allowing Elkay and other U.S. sink producers to keep manufacturing jobs in the United States." 

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For more than 90 years, Elkay has been a manufacturer of stainless steel sinks and faucets for residential and commercial use. Headquartered in Oak Brook, Ill., Elkay expanded its commercial offerings 43 years ago to include efficient water coolers, drinking fountains and now the award-winning EZH2O rapid bottle filling stations. Additionally, Elkay is also one of America's leading cabinet makers with eight brands in the marketplace.

Elkay is firmly committed to U.S. manufacturing, with six plumbing products facilities and eight cabinet facilities in the United States; filing these petitions emphasizes the company's commitment to manufacturing in the U.S., and supporting American families and communities.