RUMFORD – NewPage has won a battle with imported paper that may result in a more competitive paper mill.
NewPage Corp., based in Ohio, filed for an investigation into subsidized coated paper entering U.S. markets from China, Indonesia and South Korea last October. On Friday, a preliminary determination came down from the U.S. Department of Commerce agreeing that there were unfair trade subsidies for Chinese manufacturing.
The International Trade Commission made a similar determination in December, according to a U.S. Department of Commerce fact sheet. A final determination is scheduled by June 13.
Tony Lyons, spokesman for the Rumford mill, said such imports will be assessed a subsidy of 10 to 20 percent, effective immediately.
“That puts those imports at a cost comparable with U.S. coated paper manufacturers,” he said. “It puts imports and domestic production on an even field.”
All four of the NewPage mills, including Rumford, manufacture coated paper used in commercial printing.
According to a news release issued by the United Steel Workers, the Department of Commerce determination confirms what coated paper mills have been experiencing in the marketplace.
“Unfairly subsidized imported coated free sheet paper that has led to artificially low prices,” said Mark A. Suwyn, chairman and chief executive officer for NewPage said in a news release.
Lyons said the No. 11 machine, which had been down for several months and is now back up, was impacted by imports coming into the country.
“Whatever is good for NewPage to be more competitive, is good for Rumford employees,” he said.
He said the filing by NewPage Corp. was the first time a single company has done so. He said usually such filings are made by coalitions of manufacturers.
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