November 2, 2007
News Release 07-110
Inv. Nos. 701-TA-452 and 731-TA-1129-1130 (P)
Contact: Peg O'Laughlin, 202-205-1819

The United States International Trade Commission (ITC or Commission) today determined that there is a reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of raw flexible magnets from China that are allegedly subsidized and from China and Taiwan that are allegedly sold in the United States at less than fair value.

All six Commissioners voted in the affirmative.

As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will continue to conduct its countervailing duty investigation of imports of these products from China and its antidumping investigations of imports of these products from China and Taiwan, with its preliminary countervailing duty determination due on or about December 17, 2007, and its preliminary antidumping determination due on or about February 28, 2008.

The Commission's public report Raw Flexible Magnets from China and Taiwan (Investigation Nos. 701-TA-452 and 731-TA-1129-1130 (Preliminary), USITC Publication 3961, November 2007) will contain the views of the Commission and information developed during the investigations.

Copies of the report are expected to be available after December 4, 2007, by calling 202-205-2000 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: Raw flexible magnets consists of magnet sheeting, strips, and profile shapes. Subject flexible magnet sheeting, strips, and profile shapes are bonded magnets composed of any one or combination of various flexible binders (such as polymers or co-polymers, or rubber) and a magnetic element, which may consist of a ferrite permanent magnet material (commonly, strontium or barium ferrite, or a combination of the two), a metal alloy (such as neodymium iron-boron (NdFeB) or Aluminum, Nickel, and Cobalt (ALNICO)), any combination of the foregoing with each other or any other material, or any other material capable of being permanently magnetized. Flexible magnet sheeting, strips, and profile shapes are capable of being permanently magnetized, but may be either magnetized or unmagnetized (including demagnetized) condition. These magnets can be of any color, and may not be laminated or bonded with paper, plastic or other materials of any composition and/or color. The subject material may be uncoated or may be coated with adhesive or any other coating or combination of coatings. Rolls, coils, sheets, or pieces regardless of physical dimensions or packaging including specialty packaging such as digital printer cartridges are within the scope of this investigation. Specifically excluded from the scope of this investigation is retail printed flexible magnet sheeting, defined as flexible magnet sheeting (including individual magnets) that is laminated with paper, plastic or other material, if such paper, plastic or other material bears printed text and/or images, including but not limited to business cards, calendars, poetry, sports event schedules, business promotions, decorative motifs, and the like.

Status of Proceedings:

1.  Type of investigations:  Preliminary antidumping and countervailing duty.
2.  Petitioners: Magnum Magnetics Corp., Marietta, OH.
3.  Preliminary investigations instituted by the USITC: September 21, 2007.
4.  Commission's conference: October 12, 2007.
5.  USITC vote: November 2, 2007.
6.  USITC determinations to the U.S. Department of Commerce: November 5, 2007.
7.  USITC views to the U.S. Department of Commerce: November 13, 2007.

U.S. Industry:
1.  Number of producers in 2006: Six.
2.  Location of producers' plants: Indiana, Minnesota, Nebraska, and Ohio.
3.  Employment of production and related workers in 2006: 386.
4.  Apparent U.S. consumption in 2006:  $95.4 million.
5.  Ratio of the value of total U.S. imports to total U.S. consumption in 2006: 5.4%.

U.S. Imports:
1.  From the subject countries during 2006: (1)
2.  From other countries during 2006: (1)
3.  Leading sources during 2006:  China and Taiwan.

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