US' JW Aluminium's expansion plan processing to address tariffs on aluminum products from China
With anti-dumping duties on Chinese imports of aluminum products, JW Aluminium, a US-based aluminium producer, started a US$300 million expansion project at its plant in Goose Creek, which was expected to be completed within three years.
The expansion will double the plant's capacity and it will rely entirely on recycled aluminium for its raw materials.
The company's rapid expansion was largely driven by higher import tariffs, which forced domestic producers to expand capacity and boost sales.
A study by the Organization for Economic Co-operation and Development (OECD) found that China's aluminum industry received more than US$70 billion in subsidies between 2013 and 2017. Overcapacity has depressed aluminum prices, boosting exports to the US and cutting domestic capacity.
JW Aluminium's CEO, Lee McCarter, persuaded the big investment firms which owned JW Aluminium, including Goldman Sachs and KKR, to upgrade and expand in response to the tariffs.
