UNDERCUT THE PRICES OF LIKE YARN PRODUCED BY COMMUNITY MANUFACTURERS BY MARGINS REACHING 20 % IN SOME CASES ; WHEREAS THESE MARGINS WOULD HAVE BEEN GREATER HAD COMMUNITY PRODUCERS NOT REDUCED THEIR PRICES IN AN UNSUCCESSFUL ATTEMPT TO MEET US COMPETITION AND TO PRESERVE THEIR MARKET SHARE ;
WHEREAS THE CONSEQUENT IMPACT ON THE COMMUNITY INDUSTRY TAKES THE FORM PRINCIPALLY OF LOSS OF MARKET SHARE AND OF A DEPRESSION OF COMMUNITY PRICES FOR POLYESTER YARN ; WHEREAS , FOR EXAMPLE , THE SHARE OF THE COMMUNITY MARKET HELD BY COMMUNITY MANUFACTURERS IS ESTIMATED TO HAVE FALLEN BY 4.7 % FROM 1978 TO 1979 ; WHEREAS DURING THE SAME PERIOD THE ESTIMATED DECREASE HAS BEEN 7.9 % IN ITALY AND 7.2 % IN THE UNITED KINDGOM ; WHEREAS THE PRICES OF YARN PRODUCED BY COMMUNITY MANUFACTURERS HAVE ON AVERAGE GONE DOWN FROM JANUARY 1979 TO APRIL 1980 ; WHEREAS THE PERCCENTAGE OF PRICE DEPRESSION HAS REACHED 20 % FOR CERTAIN TYPES OF YARN ;
WHEREAS , WITH REGARD TO THE FINANCIAL SITUATION OF COMMUNITY PRODUCERS , THE COMMISSION IS AWARE THAT THE COMMUNITY INDUSTRY HAS EXPERIENCED GRAVE FINANCIAL PROBLEMS OCCASIONED BY VIRTUAL STAGNATION OF PRODUCTION ACCOMPANIED BY CONSIDERABLE OVER-CAPACITY WHICH HAVE LED TO EXTREMELY HIGH LOSSES BEING INCURRED ; WHEREAS , HOWEVER , SERIOUS EFFORTS HAVE BEEN MADE IN 1978 AND 1979 TO REMEDY THIS SITUATION BY MEANS OF RATIONALIZATION AND IN PARTICULAR BY SUBSTANTIALLY REDUCING CAPACITY AND BY IMPROVING PRODUCTIVITY ; WHEREAS AS A RESULT OF THESE RATIONALIZATION EFFORTS THE FINANCIAL RESULTS OF MOST OF THE COMMUNITY PRODUCERS IMPROVED ; WHEREAS , HOWEVER , THE DEPRESSIVE EFFECT ON SELLING PRICES RESULTING FROM THE DUMPED IMPORTS AT EXTREMELY LOW PRICES DURING THE LATTER HALF OF 1979 AND EARLY 1980 MADE IT IMPOSSIBLE FOR COMMUNITY PRODUCERS TO INCREASE THEIR SELLING PRICES IN ORDER TO COVER SHARPLY INCREASED RAW MATERIAL COSTS AND , THEREFORE , COMMUNITY PRODUCERS ' LOSSES HAVE AGAIN SHARPLY INCREASED ;
WHEREAS , EVEN AFTER ALLOWING FOR THE EFFECTS OF THE RESTRUCTURATION , THE IMPACT OF THE DUMPED IMPORTS HAS BEEN TO NECESSITATE THE LAYING-OFF OF A SUBSTANTIAL NUMBER OF WORKERS , THE CLOSURE OF SEVERAL PLANTS , AND SHORT-TIME WORKING ; WHEREAS EMPLOYMENT IN THE COMMUNITY INDUSTRY HAS GONE DOWN BY MORE THAN 1 300 UNITS FROM JANUARY 1979 TO APRIL 1980 ; WHEREAS , THIS REDUCTION DOES NOT TAKE ACCOUNT OF SOME 1 400 WORKERS WHO WERE DURING THE SAME PERIOD EITHER ON SHORT-TIME OR BEING PAID PARTIALLY OUT OF SOCIAL WELFARE FUNDS ;
WHEREAS THE COMMISSION HAS CONSIDERED WHETHER THERE IS INJURY CAUSED BY OTHER FACTORS WHICH , INDIVIDUALLY OR IN COMBINATION , ARE ALSO ADVERSELY AFFECTING THE COMMUNITY INDUSTRY ; WHEREAS THE COMMISSION HAS EXAMINED IN PARTICULAR IN THIS CONTEXT THE LEVEL AND PRICES OF OTHER IMPORTS , THE LEVEL OF DEMAND IN THE COMMUNITY FOR POLYESTER YARN AND THE COMPETITION AMONG COMMUNITY PRODUCERS ; WHEREAS THE LEVEL OF OTHER IMPORTS DECLINED IN 1979 ; WHEREAS , ACCORDING TO THE INFORMATION AVAILABLE TO THE COMMISSION ,