Canton, Ohio — The Timken Company has been notified by the U.S. Government that it will be receiving payments under the U.S. Continued Dumping and Subsidy Offset Act (CDSOA). The payments include US$70 million related to the original Timken tapered roller, ball and cylindrical bearing businesses. Timken continues to await notification on amounts that would be received as a result of the company’s February 2003 acquisition of The Torrington Company.
The CDSOA provides for distribution of monies collected by U.S. Customs from anti-dumping cases to qualifying domestic producers where the domestic producers have continued to invest in their technology, equipment and people. It is the third year the company has received a payment under CDSOA.
“Economic and national security in the U.S. depend on preserving a strong industrial base — and we’re pleased that Congress and the administration continue to make this a priority,” said James W. Griffith, president and chief executive officer of The Timken Company. “CDSOA is important because it helps assure continued investment in research, training and equipment by U.S. industrial companies, thus contributing to the health of our nation.”
As a manufacturer of highly engineered bearings, Timken qualified for a distribution of monies based upon the company’s consistent U.S. investments in production technology to remain competitive globally. In the past five years, Timken has spent $257 million on research and development to support bearing and steel programs and improve manufacturing processes.
Timken will use the proceeds of the CDSOA payment to continue reducing debt levels. This follows other debt reduction actions by the company in the past few months. The company reduced debt by US$78 million in the third quarter, and it also used US$55 million in proceeds from a share offering in October to further reduce debt.