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U.S. Wind Tower Manufacturers File Trade Complaint

By Steve Leone, Associate Editor, RenewableEnergyWorld.com
December 29, 2011 | 6 Comments

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New Hampshire, U.S.A. -- Heightened trade tensions between American and Chinese manufacturers spilled into the wind industry Thursday as a U.S. coalition filed petitions that seek stiff tariffs on towers coming into the U.S. market.

The Wind Tower Trade Coalition, according to Dan Pickard of coalition counsel Wiley Rein, includes Trinity Towers, DMI, Broadwind and Katana Summit. The group has filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission to open an anti-dumping investigation against Chinese and Vietnamese wind tower manufacturers sending their product into the U.S. market and a countervailing duty investigation into Chinese manufacturers importing into the U.S. According to Wiley Rein, “the petitions assert dumping margins of 64.37 percent for China and 59.11 percent for Vietnam.”

The DOC and the ITC are expected to initiate investigations within three weeks of the filing. The ITC's preliminary injury determination is expected in February, and the DOC is expected to make its preliminary determinations within six months. Tariffs that could impact the price of U.S. wind developments would be felt within six months if rulings come in favor of the U.S. coalition. A final determination is due in nine to 13 months.

The petitions cover only utility scale wind towers with a generating capacity of more than 100 kilowatts, and do not cover other components of a wind turbine, such as the rotor blades or nacelles. The cases cover towers whether they are imported partially or fully assembled. According to some estimates, the wind tower reflects about 20 percent of the cost of an installed wind turbine.

A coalition of American solar manufacturers is waging a similar battle against the prices coming from solar panels being manufactured in China. That case has proved to be a point of division within the industry, with some feeling that low cost panels contribute to more installations and more jobs. Others, mainly those involved in manufacturing, say it is important to maintain American jobs and American industry.

Pickard indicated many of the same factors are at play within the wind tower industry.

"There are significant volumes coming in and capturing some of the biggest projects in the U.S.," he said. "Some of the fundamental concerns are the same [as the solar industry case]. It's to keep manufacturers playing on a level playing field."

Wind Power

6 Reader Comments

Comment
1 of 6

Anonymous

December 30, 2011

This isn't the Chinese fault. Its the fault of our Gov't making it too hard to compete with the rest of the world.

Why haven't the USA oil companies filed for a tariff on all foreign produced oil coming into the country from outside USA borders? Hmmm.

This seems like the perfect storm for blocking clean energy. Local solar module prices will rise by half their current price if tariffs go into place on imports.

Looks like we are trying to have our cake and eat it too.

Comment
2 of 6

January 1, 2012

Hey Anonymous, (just great can't even be responsible for your comments.)
The one major fact over looked is that the standards of engineering excellence established throughout USA history have been softened so the 3rd world countries can dump the inferior productivity on us. You still get what you pay for.

When did cheap become out watch word? As I review 55 years as a consumer I recall when quality was the operative enigma of our purchasing thought process. 1 day in purchasing a bottle of pop and a snack in a conversant store, the young lady asked for $3.52. It was overwhelming. In our civilized society we can't shoot the messenger, so I just let the item on the shelf. The girl was stunned. How could anyone just not buy "stuff" as any price. anyway my point is we receive the quality we pay for, and $3.52 wasn't the quality I was willing to pay for.

Blame the 3rd world countries, no as their mind set is everything is equal, and what ever you can get by with is acceptable, there is no blame. How ever if your idea is to in-prove the world through better usage of resources, then I might have to rethink that statement. Just remember we did not become the greatest nation on earth by designing, manufacturing, and selling the cheap "stuff".
TRS

Comment
3 of 6

DanielOliveira

January 11, 2012

Dumping is one of those charges that is very easy to claim but nearly impossible to prove. It's great fodder for politicians and others on a crusade, but what any of us should really be concerned about is how it impacts us. Fair or unfair are judgement calls that you will never have a broad consensus on. Our only real measure is the law and the economic impact of a decision on the majority.

If Chinese manufacturers are able to sell at a lower price than a US manufacturer, the key winner is the US consumer. If the quality of the product is unsatisfactory, the word will quickly spread and the product will see fewer sales. The point is that the choice should be of the people spending the money and not imposed by a 3rd party.

And if a company consistently sell at a loss, well, that company is not going to be around for very long... unless it's subsidized by the government (think Boeing, US automotive and countless other industries), then the price mechanisms in the market are distorted and our choices are not the most optimal.

So equal opportunities yes, but then we need to level the playing field across the board. I am all for it... politicians however have a career to make.

Comment
4 of 6

Anonymous

January 12, 2012

All kind of consumer products are already today produced in China today and sold in the USA. Obviously lower prices by itself is not enough to prove dumping. Materials used in the manufacture of all of these items are quoted on world stock exchanges so I would imageine the materials used to produce the manufactured goods will have a similar cost no matter where an item is manufactured (except maybe for materials which require a lot of electricity) Of course the big difference is labour costs.

At the same time that wages rise in China (which is a good thing) I predict a slow decline or stagnation in wages in the rest of the world. But that doesn't neccessarily mean a lower standard of living, just that we will have to consume less. Is that a bad thing?

Comment
5 of 6

larryofgalaxy

January 12, 2012

"This isn't the Chinese fault. Its the fault of our Gov't making it too hard to compete with the rest of the world."

"If Chinese manufacturers are able to sell at a lower price than a US manufacturer, the key winner is the US consumer."

Just these two comments by themselves don't mean a whole lot in the greater scheme of things but as a representative sample that I see repeater far too often in this blog and many others it causes me to have concern for the average persons capability of critical thinking. Our politicians have essentially zero skills in this area and the mainstream media does its best to destroy what little grey matter is left in most peoples heads.

So it becomes obvious, based on so many similar sentiments expressed in blogs like this, that the seven or eight clowns and baboons performing in the freak show called 'debates' that the Republican party seems so proud of, and the bought and paid for Corporate Whores who populate the majority of both parties, who are willingly selected and approved by voters, do so precisely because of this lack of critical thinking. And just remember these are less than stellar comments and are minor compared to others you see on a daily basis.

So sad

Comment
6 of 6

rcorrales

January 13, 2012

The free trade and free market philosophy implies meeting high standards at different aspects such us safety (OSHA, NFPA,IEEE, IEC, etc.), labor conditions, environment friendly, etc. All the players should play with the same rules so the production costs will be similar and the quality and service will determine the best option. I have worked in several countries and I can testify that what is important in US is not priority in other countries whith a short-term vision.

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Steve Leone

About: Steve Leone has been a journalist for more than 15 years and has worked for news organizations in Rhode Island, Maine, New Hampshire, Virginia and California. more »