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January 19, 2017

Maine lawmakers back Auburn manufacturer in trade dispute with China

2009 File Photo / David A. Rodgers Kathie Leonard, president and CEO of Auburn Manufacturing Inc.

U.S. Sens. Susan Collins and Angus King and U.S. Rep. Bruce Poliquin, R-2nd District,  testified in support of Auburn Manufacturing Inc. during a hearing Wednesday before the U.S. International Trade Commission.

Auburn Manufacturing, a woman-owned high-tech textile production company with 42 employees at locations in Auburn and Mechanic Falls, is in the process of pursuing a trade case against Chinese producers for selling unfairly subsidized industrial grade amorphous silica fabric in the United States at less than fair value — reportedly putting the company, which is the leading domestic producer of the fabric, at a significant disadvantage and threatening American jobs.

Amorphous silica fabric is designed to endure intense heat and can used to insulate furnaces, industrial piping and heavy equipment. Auburn Manufacturing also makes end-use products like welding blankets, curtains and pads.

Led by owner Kathie Leonard, Auburn Manufacturing has pushed back against the rise in unfairly traded imports of silica fabric from China. The company first filed a petition with the ITC in January 2016 after losing business and laying off six production workers due to what it says are “illegally subsidized and dumped” Chinese imports.

The ITC has already made an initial determination that there is a “reasonable indication” that U.S. producers have been “materially injured” by the importation of unfairly subsidized silica fiber from China. That determination in March 2016 paved the way for the investigation to continue, which led to Wednesday’s hearing.

If the ITC makes an affirmative final determination of material injury to Auburn Manufacturing due to illegally subsidized and dumped Chinese imports, then the secretary of commerce would issue an antidumping order and a countervailing duty order.

Testimony of Maine lawmakers

“Auburn Manufacturing Inc. is the largest American producer of industrial grade amorphous silica fabric and accounts for well over half of such fabric produced in the United States,” Collins said in her written testimony. “Unfortunately, unfair and illegal subsidy practices by Chinese central, provincial and local governments, as well as dumping practices by Chinese ASF producers, are harming the hard-working men and women at Auburn Manufacturing.”

Collins said U.S. trade laws are designed to protect against the type of unfair competition specified in Auburn Manufacturing’s antidumping and countervailing duty petition and advocated for the “enforcement of these trade laws to protect Maine workers.”

King did likewise, stating in his written testimony: “Small businesses that play by the rules and that work hard to keep good-paying manufacturing jobs in the country ought to be better supported by our trade enforcement agencies. When our trading partners choose to violate agreed-upon rules, placing U.S. businesses at an unfair competitive disadvantage, we need to be able to respond swiftly and decisively. ... If the commission makes an affirmative final determination of material injury to Auburn Manufacturing due to illegally subsidized and dumped Chinese imports, then I believe China essentially stole those jobs from Maine.”

Poliquin told the commission that Auburn Manufacturing and its “skilled industrial weavers” are a “bright spot in American manufacturing, in Maine manufacturing.”

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