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TRANSCRIPT
K. Schipper: Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.
0:34
Many quartz surfaces manufacturers in India are breathing sighs of relief after an arm of the U.S. Commerce Department changed its mind about a massive increase in tariffs this year. Anti-dumping tariffs on materials from most Indian companies will remain at 3.19 percent and not increase to 161 percent.
The higher number had been proposed last summer by the U.S. International Trade Administration – the ITA – and, for one group of companies, those duties will increase to 323.12 percent.
The story begins back in 2019, when the U.S. International Trade Commission set tariffs in response to a petition filed by U.S. manufacturer Cambria Company LLC. Last year’s review is a standard procedure to check data submitted by selected exporters to ensure compliance with the tariffs set in 2020.
The review hit a snag when one group of Indian surface companies, called the Antique Group, missed a final deadline for submitting financial information to the ITA by a matter of hours. The ITA refused to accept the late documents and changed the group’s anti-dumping tariff from 3.19 percent to 323.12 percent, matching the market-price difference clamed by Cambria back in 2019.
As part of the review, 51 other Indian quartz companies didn’t report data to the ITA. Instead, they relied on the Antique Group and Pokarna Engineered Stone Ltd. to submit information for examination. Because of the data refusal from the Antique Group, the ITA set the anti-dumping tariff for the non-selected companies at one half the rate of the Antique Group, or 161.53 percent.
The ITA also set Pokarna’s anti-dumping rate at zero. That company submitted its data on time, and the ITA review found the company not exceeding margins that would be considered as below-market dumping.
Originally the ITA set a time limit of 120 days to accept comments about the decision. Two extensions stretched the deadline to Jan. 4. A Dec. 30 memo detailed a number of issues with the tariff review and explained the process in detail.
The ITA affirmed its decision to impose the high tariff on Antique Group products because it failed to cooperate to the best of its ability. However, the agency also determined the 161.53 percent rate is not reasonably reflective of the non-selected companies’ potential dumping margins, and left the tariff at 3.29 percent.
03:15
MS International, Inc., — MSI – will construct a new 548,000 ft² distribution hub in southeast Virginia. The $61.6 million facility will be erected in Suffolk, Va., near the Port of Virginia harbor complex, and is expected to create up to 80 new jobs.
The announcement last month came from Virginia Governor Glenn Youngkin, who said the state is excited to welcome MSI’s East Coast distribution facility. Virginia competed with Georgia, New Jersey and South Carolina for the project, which will be constructed by McDonald Development of Atlanta.
MSI imports more than 70,000 containers per year and manages and inventory of more than 300 million ft0178, including hundreds of thousands of slabs of natural stone and quartz. The company has more than 3,000 employees worldwide, including more than 60 in Virginia currently.
Rup Shah, MSI president, said, “This new hub distribution center will dramatically improve our long-term distribution capabilities across the Mid-Atlantic and Mid-West.”
The Virginia Economic Development Partnership worked with Suffolk to secure the project for Virginia. Youngkin approved a $225,000 grant from the commonwealth’s Opportunity Fund to assist the city with the project. The company is also eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program.
Founded in 1975 and headquartered in Orange, Calif., MSI maintains more than 40 showrooms and distribution centers across the U.S. and Canada, with domestic manufacturing facilities for Q™ Premium Natural Quartz in Latta, S.C., and Premium LVT in Cartersville, GA. The company offers quartz, natural stone, LVT tile and glass products imported from more than 37 countries.
5:12
Las Vegas used to be the land of bargains. The 99-cent breakfast may be history, but those visiting the city to attend either The International Surface Event – TISE – or the Kitchen and Bath Industry Show – KBIS – will find that their ticket gets them into both events – and more.
A unique “co-date” agreement will allow attendees at a total of five trade shows access between events during the concurrent opening dates of Jan. 31- Feb. 2. In addition to TISE and KBIS, the intershow access will include the International Builders Show – the IBS – the National Hardware Show – also known as NHS – and the Las Vegas Winter Market.
Free shuttles will connect TISE at the Mandalay Bay Convention Center with KBIS and the IBS – which together are known as Design Construction Week – at the Las Vegas Convention Center, and the Winter Market at World Market Center Las Vegas.
Officials of all the shows believe the opportunity to expand the buying and sourcing possibilities between the events will benefit all attendees. Bill Darcy, CEO of the National Kitchen and Bath Association – owner of KBIS – sums things up when he says, “Adding TISE to the list of shows in Vegas this January is a fantastic way of uniting the K&B community, and connecting them with more brands, products and new technologies.”
7:48
Caesarstone Ltd. reduced its worldwide workforce by 10 percent late last year. In a Dec. 27 filing with the federal Securities and Exchange Commission – the SEC — Caesarstone acknowledged it had finished cutting employment in Israel and other countries.
The cuts come in response to what Caesarstone officials called, “the ongoing slowdown in demand of surfacing products. Globes, an Israeli financial publication, reported on Dec. 25 that more than 200 employees would be leaving Caesarstone.
In its filing with the SEC, the company confirmed that it is taking steps to adjust its operations to address the ongoing slowdown of demand for kitchen countertops among private consumers, as well as commercial projects around the world.
The filing also noted that Caesarstone is also taking other steps to improve its operation efficiency, including increase prices, focus on growth and others.
Earlier in December, Caesarstone noted that third-quarter 2022 revenue of $181 million increased 10.6 percent from the same time in 2021, but economic conditions led to a quarterly loss of $500,000.
Caesarstone is required to report its activities to the SEC because it’s publicly traded on the NASDAQ exchange under the symbol CSTE.
9:12
Emerson Schwartzkopf: The International Surface Event, or TISE, is coming up at the very end of the month, and there are plenty of good reasons to attend. It’s the main U.S. showcase for fabrication equipment and tooling, and the ability to also attend the Kitchen and Bath Industry show – K. mentioned that earlier – is a real plus.
Trade shows, though, offer more than exhibits. The events also offer education, and that’s going to be a large part of the StonExpo sector of TISE, Paul Treanor, senior manager of content and community for Informa Markets, the owner and producer of TISE, filled me in recently on what’s in store:
Paul Treanor: Specific to StonExpo, I am very, very proud of the StonExpo floor. One, for the exhibits, it’s going to be huge. But, we’ve also got more educational programming on the expo floor for StonExpo than we’ve ever had in the past. We are going to have the Natural Stone Theatre which is being produced by the Natural Stone Institute.
And at the same time, we’re also going to have the StonExpo stage. I am especially proud of where StonExpo landed; it is a really great mix of, of programming that is for fabricators or distributors, or for business professionals is a really great mix of material education, whether you want the technical stone materials, or if you’re looking for more social media and marketing type of topics.
And then, over and above, you have the Natural Stone Theater from NSI, and they are focusing 100% on stone and stone-related topics. There is going to be a plethora of information for the StonExpo attendees to learn and find out more.
Schwartzkopf: Remember, TISE is January 31 through February 2 in Las Vegas at the Mandalay Bay Convention Center. For more information, go to www.i-n-t-l-surfaceevent.com. Again, that’s w-w-w-dot-i-n-t-l-surfaceeevent – that’s all one word – dot com.
Schipper: In other news from around the industry…
Stone Summits led by industry leaders are back on the calendar in a big way in 2023. Industry leaders will cover a wide range of topics relevant to fabricators, including stone shop management, business diversification and ways to increase efficiency. Attendees will also have the opportunity to source products and gain valuable networking time.
Summits are scheduled in Arizona next month; Tennessee in March; Utah in May; Minnesota and Oregon in June; Pennsylvania in July; Missouri in September, Connecticut in October, and Texas in November. The series is produced by the Natural Stone Institute and “Stone World” magazine. For info, go to www.stoneindustryeducation.com
12:20
COVID is still doing a number on the scheduling of industry tradeshows. The China Xiamen International Stone Fair announced last month that it is rescheduling its 23rd edition from late March to June 5-8. The decision was made with an eye on easing travel restrictions in China due to COVID 19.
A statement from organizers said that the move is to ensure the safety and health of people to the greatest extent as the country eases its travel restrictions for foreign visitors. The statement also cited new rules implemented by China in November for foreign travelers. That includes a reduction in mandatory quarantine and changes in COVID testing. For more information, go to www.stonefair.org.cn
13:11
Schwartzkopf: Customers of Eastern U.S. distributor C.H. Brings Company learned late last week that the 56-year-old company would be closing its doors. A statement from the Reading, Pennsylvania-based company based the decision on an inability to restructure its relationship with its primary supplier.
The five locations in Georgia, North Carolina, Pennsylvania and Virginia will close by month’s end, with the rest of the company winding down during the first quarter.
Julia Klein, C.H. Briggs chairwoman said, quote “Our work has always been about people and community – creating exceptional spaces where we can all live, work, learn, play, and heal. Our hope is that those spaces, and the people who design and build them, will be our legacy.” Unquote
14:04
Schipper: And Cosentino Group has received a €120-million loan from the lending arm of the European Union to enhance and improve the surfacing company’s green production work.
The loan is the second to Cosentino from the Luxembourg-based European Investment Bank, and will fund efficiency improvements and renewable energy, along with improving its recycling efforts at its production headquarters in Cantoria, Spain.
Part of the funding will address production efficiency through automation, robotization and digitization. Cosentino will also improve the recycling of waste from production materials and the installation of new renewable energy generation capacity for self-consumption.
The loan will fund project construction and implementation through 2025, with the temporary hiring of around 200 people a year. Completed projects are expected to generate 125 new jobs in company production areas.
Remember, our online newsletter, Slab and Sheet, comes out on alternate Wednesdays. For notes and a transcript of this podcast, go to www.radiostoneupdate.com.
For Radio Stone Update, I’m K. Schipper and we’ll see you here again soon.
