Whirlpool seeks inquiry of foreign refrigerators
01/04/2011 12:00
NEW YORK, March 30 (Reuters) - Whirlpool Corp (WHR.N: Quote, Profile, Research, Stock Buzz) asked trade regulators to investigate the production of certain South Korea and Mexico-made refrigerators it says are being sold in the United States at "unfairly subsidized" prices.
The world's largest appliance maker said on Wednesday it filed an anti-dumping petition with the U.S. Department of Commerce and the International Trade Commission, requesting an inquiry into bottom-mount refrigerators exported from these countries.
Two South Korean manufacturers, Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research, Stock Buzz) and LG Electronics Inc (066570.KS: Quote, Profile, Research, Stock Buzz), export products to the United States from manufacturing facilities in South Korea and Mexico.
Whirlpool said its decision to take legal action came after an extensive investigation showed Samsung and LG violated U.S. trade laws and, as a result, hurt the U.S. appliance industry.
Appliance makers such as Whirlpool and Electrolux AB(ELUXb.ST: Quote, Profile, Research, Stock Buzz) have been finding it harder to raise prices as their South Korean rivals generally stick with existing prices despite rising raw material costs. [ID:nLDE711165]
"When foreign producers compete in the U.S. market using unfair trade practices, we have no choice but to take action," said Marc Bitzer, president of Whirlpool North America. "Dumping is an unfair trade practice used to drive out competitors, which means consumers end up with fewer choices."
Whirlpool also filed a countervailing duty petition, seeking an investigation into the "substantial unfair subsidies given by the Korean government to Samsung and LG in the past few years."
LG and Samsung both said the dumping allegations were unfounded.
"Average selling prices in the United States for LG-manufactured multi-door refrigerators are consistently higher than those built by Whirlpool," LG said in a statement that argued South Korean manufacturers have been introducing multi-door refrigerators with superior features and technology.
"There has been no material injury to the U.S. industry. Rather, this is an example of the inability of a domestic manufacturer to keep up technologically."
Whirlpool shares closed up 2.65 percent at $84.19 on the New York York Exchange.
By Dhanya Skariachan
Editing by Lisa Von Ahn, Gunna Dickson and Andre Grenon
Source: reuters.com
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