June 20, 2013
News Release 13-057
Inv. Nos. 731-TA-1202-1203 (Final)
Contact: Peg O'Laughlin, 202-205-1819

The United States International Trade Commission (USITC) today determined that a U.S. industry is threatened with material injury by reason of imports of xanthan gum from China that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

The USITC further determined that an industry in the United States is neither materially injured nor threatened with material injury by reason of imports of xanthan gum from Austria that Commerce has determined are sold in the United States at less than fair value.

All six Commissioners voted in the negative with respect to imports of this product from Austria.

With respect to imports of this product from China, Chairman Irving A. Williamson and Commissioners Daniel R. Pearson, Shara L. Aranoff, and David S. Johanson determined that a U.S. industry is threatened with material injury; Commissioners Dean A. Pinkert and Meredith M. Broadbent determined that a U.S. industry is materially injured.

As a result of the USITC's affirmative determination, Commerce will issue antidumping duty orders on imports of xanthan gum from China. As a result of the USITC's negative determination, no antidumping duties will be imposed on imports of this product from Austria.

The Commission's public report Xanthan Gum from Austria and China (Investigation Nos. 731- TA-1202-1203 (Final), USITC Publication 4411, July 2013) will contain the views of the Commissioners and information developed during the investigations.

Copies may be obtained after July 23, 2013, by emailing pubrequest@usitc.gov, calling 202-205-2000, or by writing the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.

Product Description: Xanthan gum is a fermentation product used to thicken and provide stability to water-based solutions. It is used primarily in five sectors: food and beverage products, pharmaceuticals, consumer goods, industrial uses, and oilfield applications. The product is differentiated into grades based on regulatory requirements varying by use and related to the manufacturing process and product purity. Xanthan gum may be blended with sugars, minerals, salts, and other products. This investigation covers all grades of xanthan gum and mixtures containing 15 percent or more xanthan gum by dry weight.

Status of Proceedings:

1. Type of investigation:  Final antidumping.
2. Petitioner:  CP Kelco U.S., Atlanta, Georgia. 
3. Investigation instituted by USITC:  June 5, 2012.
4. USITC hearing:  May 23, 2013.
5. USITC vote:  June 20, 2013.
6. USITC notification of Department of Commerce:  July 2, 2013.


U.S. Industry:

1. Number of U.S. producers in 2012:  Two.
2. Location of producers' plants:  Illinois, California, and Oklahoma. 
3. Employment of production and related workers in 2012: (1) 
4. U.S. producers' U.S. shipments in 2012: (1)
5. Apparent U.S. consumption in 2012: (1) 
6. Ratio of subject imports to apparent U.S. consumption in 2012: (1)


U.S. Imports:

1. From the subject countries during 2012: (1)
2. From other countries during 2012: (1)
3. Leading sources during 2012:  China, Austria, and France (based on Department of
       Commerce statistics)

(1) Withheld to avoid disclosure of business proprietary information.