R-Lancaster State Senator, Tim Schaffer has plans to benefit Anchor Hocking by introducing new legislation this week. His primary concern is with the glass industry. His resolution will support the U.S. Department of Commerce to look into matters related to clearing American consumer products that are subsidized by their governments from foreign companies.
Justin Stanek, a Schaffer spokesperson said that Chinese government will be paying subsidies to glass manufacturers which will allow the manufacturers to sell their goods at a lower price.
In the recent years, many American glass companies have gone through difficult times and blamed the removal and government subsidies to be the main reason, said Schaffer’s office.
According to information by Stanek, the Chinese government gave glass manufacturers around $30 billion in the period 2004 and 2008. This is a practice that can affect companies such as Anchor Hocking. Earlier this year, Anchor Hocking faced many financial difficulties until it received an investment of worth $20 million from Monomoy Capital Partners, a parent company to EveryWare Global.
Schaffer said if they could get the U.S. Department of Commerce to enquire about the dumping of the consumer goods, especially by the Chinese, as a country they could take precautionary measures to end this absolutely unfair marketing practice. One of the measures could be to excise duty taxes on subsidized glass products that are entering into the country. The government subsidizing is an act of cheating and Schaffer’s staff is working on the bill for a final wording.
He said, his companies including Anchor Hocking honestly make glass to sell at affordable prices’ however, nobody competes with the dumping.
If Shaffer’s resolution is accepted by the Ohio Senate floor for voting purposes, the act would not be modified or touched until after the November elections.