WASHINGTON, Nov 12 (Reuters) - The U.S. Commerce Department said on Friday it would investigate whether Chinese companies are selling hundreds of millions of dollars of wood flooring in the United States at unfairly low prices.
The department said it accepted a petition from an industry group that includes Anderson Hardwood Floors, Award Hardwood Floors and Shaw Industries Group.
The case involves easy-to-assemble wood floor planks like those sold at U.S. retailers Home Depot (HD.N: Quote, Profile, Research, Stock Buzz) and Lowe's (LOW.N: Quote, Profile, Research, Stock Buzz). U.S. wood floor manufacturers have been hurt by the slump in domestic new house construction.

U.S. manufacturers want anti-dumping duties ranging from about 195 percent to 281 percent on "multilayered wood flooring" from China.

They also want additional countervailing duties to offset Chinese government subsidies, including what they said was a government policy of keeping the Chinese yuan currency undervalued by as much as 25 percent to 50 percent.
Imports of multilayered wood flooring from China fell to $119.7 million in 2009 from $148 million in 2008.

U.S. manufacturers said the U.S. recession was the cause of the decline, and argued China was positioned to grab a bigger share of the market as the U.S. economy recovered.

The U.S. International Trade Commission, which has the final say on whether any duties are imposed, will examine the issue and vote in December on whether there is enough evidence of injury to U.S. companies for the case to proceed.