Apogee Enterprises Welcomes Commerce Department's Preliminary Finding of Dumping of Chinese Replacement Windshields

Business Wire, Sept 13, 2001

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 13, 2001

Apogee Enterprises, Inc. (Nasdaq:APOG) welcomed the announcement that the U.S. Department of Commerce has preliminarily determined that automotive replacement glass (ARG) windshields from China are being sold at prices that are below fair value, and that critical circumstances exist. Apogee's manufacturing subsidiary, Viracon/Curvlite, fabricates ARG windshields in its plant in Owatonna, Minnesota.

"Obviously, we are pleased that the department's finding confirms the evidence of dumping by Chinese windshield producers that we supplied in our petition," said Patricia A. Beithon, Apogee's general counsel. "This decision is a first step toward restoring conditions of fair trade in the U.S. ARG windshield market. For most of the imports entering the United States, importers now have a contingent liability that ranges from 9.79 to 124.50 percent of the value of the Chinese windshields they are bringing in. Further, we believe that the actual level of dumping for all Chinese producers is much higher than 9.79 percent. We will continue to provide the Commerce Department with information and analysis that will help them reach an accurate final determination."

The Commerce Department preliminarily found a dumping margin of 124.50 percent for some 23 Chinese producers of windshields. The department also preliminarily found a dumping margin of 9.79 percent for Fuyao Glass Industry Group Co. Ltd. (FYG) and its wholly-owned U.S. importer, Greenville Glass, Inc.

The department also preliminarily determined that "critical circumstances" exist for companies that received a margin of 124.50 percent. This occurs where there are massive imports over a reasonably short period of time since the filing of the petition and where importers knew or should have known that Chinese exporters were selling their merchandise at below fair value prices. As a result, the preliminary determination as to those producers is effective retroactive 90 days from the date of publication of Commerce's determination, or approximately June 21. Both Commerce and the International Trade Commission will make final critical circumstances findings in their final determinations.

The department's final antidumping determination is scheduled for November 26. If it is affirmative, then the U.S. International Trade Commission must make its final determination on injury within 45 days of that date, or January 2, 2002.

Apogee Enterprises, Inc., headquartered in Minneapolis, is a world leader in technologies involving the design and development of value-added glass products, services and systems. The company is organized in three segments:

-- Architectural products and services companies design, engineer, fabricate
and install the walls of glass and windows comprising the outside skin of
commercial and institutional buildings.

-- Large-scale optical technologies companies develop and produce high
technology glass that enhances the visual performance of products for the
display, imaging and picture framing industries.

-- Automotive replacement glass and services companies fabricate, repair and
replace automobile windshields and windows. Businesses in this segment are:
Harmon AutoGlass, a leading U.S. chain of retail auto glass replacement and
repair stores; and Viracon/Curvlite, a leading U.S. fabricator of aftermarket
foreign and domestic car windshields.