Felker Bros. Corp., a Marshfield-based producer of stainless steel piping products and fabricated piping systems, has petitioned the federal government for relief from predatory pricing practices, which company President Dave Hendrickson said has hurt sales.
Felker Bros. and other petitioners in a pending antidumping investigation allege welded stainless pressure pipe imported from Malaysia, Thailand and Vietnam and sold for less than the cost of the products has taken a quarter of the U.S. market in the past two years.
“It’s a common practice,” Hendrickson said. “They sell below cost then raise prices when they own the market once domestic manufacturers are gone.”
Hendrickson said he hasn’t had to lay off workers because sales of fittings and fabricated products have been strong enough to offset decreased stainless steel pipe sales, but the company could have hired more workers if it didn’t have to contend with unfair international trade practices.
“All we want is fair trade,” Hendrickson said. “Stainless is a major portion of the material cost in making a pipe, and there’s no way they can be making them that low. They’re being subsidized by China, in my opinion.”
Felker Bros. petitioned for antidumping relief from unfair trading practices by Chinese stainless steel pipe importers in 2009 and won, which improved sales until about 2012.
U.S. Sen. Tammy Baldwin testified on behalf of Felker Bros. before the U.S. International Trade Commission on May 23. The ITC investigates claims of dumping injuries, which are filed with the U.S. Department of Commerce, and has the power to issue antidumping duties on countries found to have been engaged in predatory pricing.
“When the rules are fair and there is a level playing field, Felker can compete with any company in the world,” Baldwin said during the hearing. “When countries are allowed to cheat and sell their products below fair market value, Felker, its workers and its customers lose out.”
Hendrickson said he expects the ITC to issue a ruling regarding the petition June 24.
Baldwin plans to tour Felker Bros. and attend the Mayor’s Dairyfest Breakfast on Friday.