Tree Island Wire Income Fund

Tree Island Wire Income Fund

January 17, 2008 15:46 ET

Tree Island Comments on Favourable U.S. Anti-Dumping Decision

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Tree Island Wire Income Fund (the "Fund") (TSX:TIL.UN) today commented on a favourable preliminary determination by the U.S. Department of Commerce that nails are being dumped into the U.S. by producers in China and the United Arab Emirates.

"Tree Island has been tracking this situation and this ruling is generally in line with our expectations. While we are cautious about the longevity of the protection provided by the ruling, it will have a positive impact on Tree Island in 2008," said Daniel McAtee, President and CEO of Tree Island Industries Ltd., and a Trustee of the Fund. "We manufacture nails only in North America and we have available capacity to meet the anticipated additional demand that this ruling may create. This ruling will not impact our Chinese operations that were acquired in 2007."

As a result of the U.S. Department of Commerce decision, any U.S. importer of nails from China or the United Arab Emirates will be required to post a bond equal to the duty percentage of the invoice price. Tree Island's understanding is that the U.S. anti-dumping duty will range from 21% to 44% with the majority of producers in China subject to a 29.36% duty. U.S. imports of nails from China in 2006 represented nearly 680,000 tons, or approximately US$450,000,000 in value, up 79% in volume from 2004.

The preliminary U.S. Department of Commerce determination is subject to review over the next six months, at which time a final determination will be made. Under international trade laws, dumping occurs when a product is exported at less than fair value and causes or threatens to cause material injury to a domestic industry in the importing country.

About the Fund

The Fund was launched on November 12, 2002, with the completion of an Initial Public Offering. There are 21,918,400 units of the Fund outstanding, representing a 100% ownership interest in Tree Island.

The Fund's performance depends entirely on the performance of Tree Island.

Tree Island Profile

Headquartered in Richmond, British Columbia, Tree Island Industries produces wire products for a diverse range of construction, agricultural, manufacturing and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products. The company markets these products under the Tree Island, K-Lath, Halsteel, Tree Island Wire, Industrial Alloys and USA-Wire brand names. Tree Island also owns and operates a Hong Kong-based trading company that provides internationally sourced products to Tree Island and its customers worldwide.

Forward-Looking Statements

This press release contains forward-looking statements based on assumptions considered reasonable at the time they were prepared. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. These statements speak only to the conditions in existence as of the date of this press release, and the Fund maintains no obligation to update such statements.

Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Such risks and uncertainties include, but are not limited to, risks associated with operations such as competition, dependence on the construction industry, market conditions for our products, supplies of and costs for our raw materials, dependence on key personnel, labour relations, regulatory matters, environmental risks, the successful execution of acquisition and integration strategies, foreign exchange fluctuations, the effect of leverage and restrictive covenants in financing arrangements, product liability, the ability to obtain insurance, energy cost increases, the ability to fund necessary future capital investments, changes in tax legislation, and other risks and uncertainties set forth in our publicly filed materials including our Annual Information Form.

Contact Information

  • Tree Island Industries Ltd.
    Brian Irving
    Chief Financial Officer
    (604) 523-4516
    Longview Communications Inc.
    Alan Bayless
    Media Contact
    (604) 694-6035
    Georgeson Shareholder Communications
    Unitholder Information
    North American Toll Free: 1-866-725-6498