Ta Chen International, a Taiwan-based pipe manufacturer, is acquiring an aluminum processing plant from Arconic in Texas, Nikkei reports. That follows the implementation of section 232 duties on steel and aluminum products, including pipes as outlined in Panjiva research of June 1. The CEO of Ta Chen, Robert Shieh has indicated the move is due to the “significant benefit” to manufacturing in the U.S. due to the tariffs.

Panjiva data shows Ta Chen’s U.S. seaborne imports have been in a steady decline since the imposition of tariffs on March 29 with a 35.2% drop in the three months to August 31 vs. the first quarter of 2018 and by 35.6% on a year earlier.

Chart shows U.S. seaborne imports associated with Ta Chen International covering steel and aluminum products. Lower panel indicates change vs. a year earlier.   Source: Panjiva

The acquisition should resolve a significant portion of Ta Chen’s commercial requirements for the U.S. Aluminum products represented 60.1% of its shipments by weight in the past 12 months led by aluminum alloy plate (50.9% of all volumes).

The remainder includes steel products including stainless steel pipes (13.0%) where duties will continue to be paid unless Ta Chen can either (a) persuade its customers to apply for exemptions from duties or (b) it finds another acquisition in the U.S.

Chart segments U.S. seaborne imports associated with Ta Chen International covering steel and aluminum products by product (HS-6) and country of origin. Data covers the past 12 months, denominated in kilograms.   Source: Panjiva