On  March  5  the USA President released a statement regarding import

duties  on 10 metal product categories, applicable to 12 countries. The

new  duties  in  the  range of 8-30% will become effective on March 20.

Since  the  maximum rate will be applied to steel sheets which is not a

"Liepājas  metalurgs"  product,  the  situation  cannot be described as

emergency.  Within  the  next  few days "Liepājas metalurgs" expects to

receive  a  more specific description of the duties applicable to steel

reinforcement bars produced by the steel works.

Each  of  the 12 countries falling under the statement differs from the

others  in  the  sense  of product range and output volumes, therefore,

without  a  more detailed specification, it is not possible to tell the

exact duty rate for each of the countries.

Prior  the anti-dumping process was launched by the USA in 2000, 50% of

"Liepājas  metalurgs"  output  went  to  the  USA.  As  a result of the

process,  "Liepājas  metalurgs"  produce  was  taxed  at a 17.21% rate.

"Liepājas  metalurgs" might resume exports to the USA provided that the

duties  proclaimed  by  the  USA President on March 5 do not exceed the

previous rate.

       Though  in  2001  "Liepājas  metalurgs"  output  volumes did not

decrease, the Company profits were 3.7 times lower than in the previous

year.  According  to non-audited statements, Company net sales amounted

to LVL 68.27 million, of this LVL 66.6 million were exported.