WOR Worthington Industries

Worthington Industries, Inc. (NYSE: WOR) announced today that it has initiated legal proceedings with the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (USITC) for relief from unfair imports of certain non-refillable steel cylinders from India.

Worthington’s action alleges that non-refillable steel cylinders meeting U.S. Department of Transportation specification 39 for pressure vessels (DOT-39 cylinders) imported from India are being sold at less than fair value, or “dumped,” in the United States by margins as high as 57 percent. They are also being unfairly subsidized by the Indian government. DOT-39 cylinders are used in a wide variety of applications, but primarily in the transportation and delivery of refrigerant gases serving the U.S. HVAC industry, as well as helium, and foam insulation, sealants, and adhesives used in construction.

Worthington Industries President and CEO Andy Rose said, “Low priced imports from India have surged since our successful trade case against China demonstrating the adverse impact that unfair import competition has on our business. The U.S. non-refillable cylinders market continues to be a target for opportunistic foreign industries, but we are prepared to do everything in our power to ensure we can continue serving our customers with American-made products that provide high-quality jobs in our manufacturing facilities in Ohio and Kentucky. We need trade relief against India for us to be able to do that.”

Dumped and subsidized Indian DOT-39 cylinders have surged into the U.S. market at aggressively low prices over the past three years. Worthington, the sole remaining U.S. manufacturer of DOT-39 cylinders, successfully sought trade relief in 2020 from the U.S. government after losing substantial sales, market share, and revenue to unfair imports of DOT-39 cylinders from China. As Chinese import volumes abated and pricing improved in response to that successful trade case, imports of the same product from India flooded into the United States.

After facing years of dumping by China, the onslaught of low-priced Indian imports has thwarted the recovery of Worthington’s DOT-39 cylinders business. Worthington has faced declines in market share, sales, shipments, capacity utilization, and workforce as it has suffered under the pressure of unfair Indian imports. Worthington made a $21 million investment in a new DOT-39 cylinder production line in Columbus, Ohio and added 90 jobs as part of its plan for growth after relief was granted in the China case. Low-priced Indian imports have resulted in the loss of substantially all the new jobs and threatens the ongoing manufacture of this product in the United States.   

Commerce will next determine whether to initiate the antidumping duty and countervailing duty investigations within 20 days of today’s petition filing. The USITC will reach a preliminary determination of material injury or threat of material injury within 45 days. The entire investigative process will take approximately one year, with final determinations of dumping, subsidization and injury likely occurring in the second quarter of 2024.

The non-refillable steel cylinders covered by the petitions are portable, seamed (welded) pressure vessels meeting the requirements of USDOT specification 39, Transport Canada Specification 39M, or United Nations pressure receptacle standard ISO 11118 for non-reusable (non-refillable) cylinders for hazardous material packaging. Certain non-refillable cylinders range in size from 100-cubic inch (1.6 liter) water capacity to 1,526-cubic inch (25 liter) in water capacity. They are used in a wide variety of applications, but primarily in the transportation and delivery of refrigerant gases, helium, and foam insulations, sealants, and adhesives used in construction.

About Worthington IndustriesWorthington Industries (NYSE:WOR) is a leading industrial manufacturing company pursuing its vision to be the transformative partner to its customers, a positive force for its communities and earn exceptional returns for its shareholders. For over six decades, the Company has been delivering innovative solutions to customers spanning industries such as automotive, energy, retail and construction. Worthington is North America’s premier value-added steel processor and producer of laser welded solutions and electrical steel laminations that provide lightweighting, safety critical and emission reducing components to the mobility market. Through on-board fueling systems and gas containment solutions, Worthington serves the growing global hydrogen ecosystem. The Company’s focus on innovation and manufacturing expertise extends to market-leading consumer products in tools, outdoor living and celebrations categories, sold under brand names, Coleman®, Bernzomatic®, Balloon Time®, Level5 Tools®, Mag Torch®, Well-X-Trol®, General®, Garden-Weasel®, Pactool International® and Hawkeye™; as well as market leading building products, including water systems, heating & cooling solutions, architectural and acoustical grid ceilings and metal framing and accessories.

Headquartered in Columbus, Ohio, Worthington operates 52 facilities in 15 states and nine countries, sells into over 90 countries and employs approximately 9,000 people. Founded in 1955, the Company follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Relentlessly finding new ways to drive progress and transform, Worthington is committed to providing better solutions for customers and bettering the communities where it operates by reducing waste, supporting community-based non-profits and developing the next generations of makers.

Safe Harbor StatementWorthington Industries wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the “Act"). Statements by Worthington Industries which are not historical information constitute "forward looking statements" within the meaning of the Act. All forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those projected. Factors that could cause actual results to differ materially include risks, uncertainties and impacts described from time to time in Worthington Industries’ filings with the Securities and Exchange Commission, including those related to COVID-19 and the various actions taken in connection therewith, which could also heighten other risks.

Contacts:SONYA L. HIGGINBOTHAMVP, CORPORATE COMMUNICATIONS AND BRAND MANAGEMENT614.438.7391 | sonya.higginbotham@worthingtonindustries.com

MARCUS A. ROGIERTREASURER AND INVESTOR RELATIONS OFFICER614.840.4663 | marcus.rogier@worthingtonindustries.com

200 Old Wilson Bridge Rd. | Columbus, Ohio 43085WorthingtonIndustries.com