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Aluminum Association Leadership to Testify on Chinese Industry Practices at U.S. International Trade Commission Hearing

September 28, 2016

ARLINGTON, VA – Garney Scott, President & CEO of Scepter, Inc. and Chairman of the Aluminum Association as well as Heidi Brock, President and CEO of the Aluminum Association, will testify at the U.S. International Trade Commission (USITC) public hearing on the Investigation on the Competitive Conditions Affecting the U.S. Aluminum Industry, scheduled for September 29 at 9:30 a.m. ET. Mr. Scott and Ms. Brock will call attention to the challenges posed to domestic aluminum producers by overcapacity in China and encourage the USITC to engage on the issue through its investigation. To view the full prepared testimony, click here.

“We are gratified that the Commission has begun the process of investigating the complex issues driving overcapacity and overproduction in the aluminum sector in China,” Ms. Brock will say, according to her prepared remarks.  “We remain committed to a healthy and growing global aluminum industry where all producers play by the same set of rules on a levelplaying field.”

The Aluminum Association represents aluminum companies and their suppliers throughout the value chain, from primary production to value added products to recycling. The domestic aluminum industry contributes $75 billion in direct annual economic output and employs 161,000 workers. While overall industry jobs grew 3 percent between 2013 and 2016, jobs in the alumina refining and aluminum smelting sector declined by more than half. This contributed to a loss of more than 7,000 jobs in that sector in just three years. The contraction is attributed to aluminum overproduction in China.

“While overcapacity is most acutely impacting the upstream market today it could just as easily impact our growing downstream market tomorrow,” added Ms. Brock in her written testimony. “That’s why the entire aluminum value chain which we represent is committed to getting this right.”

While previously the main market for its own aluminum production, Chinese manufactures have continued to increase production even as demand at home has slowed – turning to global markets to absorb the excess supply.  Much of this expansion is being driven by misguided government policies such as artificial incentives, subsidies, and provincial or local government employment programs and has led to a myriad of questionable trade practices including metal misclassification and trans-shipment. The effect has been to depress global markets, making it challenging for many producers to operate and remain profitable.

“The real issue, and what has changed over the several years, is that a significant – in fact, dominant – share of the global supply of aluminum is advantaged by Chinese government policies that the rest of the world’s industry does not and cannot benefit from,” Mr. Scott will say in his prepared remarks. “As an industry, we are united in our concern over the oversupply of Chinese aluminum.”

The Aluminum Association is supporting the USITC investigation as it seeks insights that will help inform an approach to addressing the capacity misalignment in the aluminum sector. A final report is expected in June of 2017.

To learn more about the Aluminum Association’s position regarding China and trade, please visit www.aluminum.org/China.

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About The Aluminum Association
The Aluminum Association represents U.S. and foreign-based companies and their suppliers throughout the value chain, from primary production to value added products to recycling. The Association is the industry’s leading voice, providing global standards, business intelligence, sustainability research and industry expertise to member companies, policymakers and the general public. The aluminum industry helps manufacturers produce sustainable and innovative products, including more fuel efficient vehicles, recyclable packaging, greener buildings and modern electronics. In the U.S., the aluminum industry creates $186 billion in economic activity. For more information visit www.Aluminum.org, on Twitter @AluminumNews or at Facebook.com/AluminumAssociation.

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