CertainTeed Gypsum Canada Files US Drywall Anti-Dumping Case
US Dumping of 54-inch Drywall is preventing new investment and jobs in Western Canada
CertainTeed Gypsum Canada today announced that it has filed an anti-dumping “retardation” complaint against US importers of 54-inch wide drywall into Western Canada. This is the second drywall case filed with the Canada Border Services Agency in recent years.
CertainTeed Gypsum Canada (“CertainTeed”) asserts that US importers are dumping 54-inch wide drywall in the Western market at prices substantially below what they charge in their domestic US market. This dumping is preventing the company from investing in domestic 54-inch manufacturing capability by suppressing 54-inch prices. This market suppression is destroying the economic viability of, and thus “retarding”, any 54-inch manufacturing investment in Western Canada.
“US dumping of 54-inch drywall in Western Canada, is distorting the Western Canadian drywall market, and preventing new investments and jobs,” said Matt Walker, Chief Executive Officer of
CertainTeed Canada. “We believe we have a very strong case that will restore free and fair trade and create new jobs in Western Canada.”
In January 2017, the Canadian International Trade Tribunal (CITT) validated and confirmed CertainTeed’s first anti-dumping complaint against US Importers of 48-inch wide board in Western Canada. The Canadian Border Services Agency (CBSA) then imposed final duties on US importers who were found to be “dumping” 48-inch wide drywall into Western Canada at levels of 94.6% to 324.1%.
Despite the confirmed dumping findings of the 2016 anti-dumping complaint, the behaviour of US importers on 54-inch wide drywall has not changed. Since 54-inch drywall was not “subject goods” in the original case, no duties apply on 54-inch board from the original case, and therefore the dumping levels of this particular drywall have continued, if not, increased in Western Canada over the last two years.
The 2016 Complaint and resulting duties have had a positive impact on Western Canadian 48-inch wide drywall manufacturing. CertainTeed has been able to rehire plant shifts that were cut over recent years due to the dumping injury, and further increased hiring of Union operators and staff at CertainTeed’s three Western drywall plants and improved job security for the existing employees.
The mitigation of 48-inch wide drywall dumping, and resulting improved business performance has also enabled capital reinvestment in CertainTeed’s gypsum production and mining operations, thus ensuring the continued viable and more secure operations of these Canadian drywall plants. The mitigation of dumping and improved viability of domestic production of 48-inch wide drywall has therefore had a materially positive impact on the economy of Western Canada with higher employment, significantly increased direct manufacturing investment and production and therefore resulted in positive secondary economic benefits for Canadian contractors, material suppliers, haulage and logistic companies and positive government tax benefits.
During the 2016 Complaint, supporters of US importers made claims that duties would result in material negative public interest concerns including: “hundreds of millions of dollars” of cost impact from fixed price drywall contracts, drywall supply unavailability and a massive increase in costs of residential homes. As a result of these concerns, the government took precautionary measures including setting up a Relief Fund for contractors who could provide evidence of negative financial impact of duties on fixed price contracts. The total value of the validated claims by contesting parties, was a tiny fraction (less than 2%) of the claims made in Tribunal testimony, evidencing that the concerns were unfounded. The Minister of Finance also implemented a duty Remission of 32.17% which reduces the calculated dumping duty levels, and allows US importers to import 48-inch drywall in Western Canada at reduced dumping levels.
CertainTeed Gypsum Canada therefore continues to face some injury from US dumping of 48-inch wide drywall, but at mitigated levels, and now faces increasing and unmitigated levels of dumping of 54-inch wide drywall. This is resulting in continuing unfair market pricing of drywall in the Western Canadian market, where domestic Canadian manufacturing faces the significant economic challenge to rebuild and recover from years of dumping injury.
CertainTeed has informed customers of the filing of this case and advised them to visit the CBSA (www.cbsa-asfc.gc.ca) and CITT (www.citt.gc.ca) websites which explain the Complaint process and the potential imposition of dumping duties. Based on the industry’s experience during the last complaint involving 48-inch products in Western Canada in 2016, CertainTeed Gypsum Canada is encouraging its customers to inform their downstream customers of this complaint filing, and to seek early legal counsel with respect to the potential impact that dumping duties may have on any term fixed-price contracts.
As Canada’s only remaining manufacturer of drywall in Western Canada, CertainTeed Gypsum Canada has demonstrated a strong commitment to investing in and supporting its domestic business: our local workforce, manufacturing and mining operations and ensuring Canadian local customer supply and service. We highly appreciate the good support of the local Unions for our operations who share the common objective to protect the jobs of their members, and of our customers in Western Canada who loyally support Canadian domestic supply. CertainTeed has three drywall plants in Vancouver, Calgary and Winnipeg, and two gypsum mines in B.C. and Manitoba.
About CertainTeed Canada
Based in Mississauga, CertainTeed Canada operates manufacturing facilities in Delta, British Columbia; Calgary, Alberta; Winnipeg, Manitoba; Mississauga and Oakville, Ontario; Ville Ste-Catherine, Quebec; and McAdam, New Brunswick.
Through the responsible development of innovative and sustainable building products, CertainTeed, headquartered in Malvern, Pennsylvania, has helped shape the building products industry for more than 110 years. Founded in 1904 as General Roofing Manufacturing Company, the firm’s slogan “Quality Made Certain, Satisfaction Guaranteed,” quickly inspired the name CertainTeed. Today, CertainTeed® is a leading North American brand of exterior and interior building products, including roofing, siding, fence, decking, railing, trim, insulation, drywall and ceilings.