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Capital expenditures rose from 2003 to 2004, and then fell in 2005, but were higher in interim 2006 than in interim 2005. Research and development expenditures increased from 2003 to 2005, and were higher in interim 2006 than in interim 2005. 147

The sharp decline in the domestic industry’s financial performance from 2003 to 2004, and the declining employment indicators in that period, coincide with the largest annual increase in the volume and market share of subject imports over the POI. At the same time, there was significant underselling by subject imports, often by large margins, and a decline in domestic prices. Although the domestic industry’s financial performance recovered somewhat in 2005, it continued to be poor in that year, as subject imports further increased their presence in the U.S. market. Accordingly, for purposes of these preliminary determinations, we conclude that subject imports had an adverse impact on the condition of the domestic industry during the POI.

CONCLUSION

For the reasons stated above, we determine that there is a reasonable indication that an industry in the United States is materially injured by reason of subject imports of CFSP from China, Indonesia, and Korea that are allegedly subsidized and sold in the United States at less than fair value.

147 Capital expenditures were $209.3 million in 2003, $263.7 million in 2004, $172.8 million in 2005, $118.9 million in interim 2005, and $129.3 million in interim 2006. Research and development expenditures were $14.1 million in 2003, $14.2 million in 2005, and $18.7 million in 2005, and were $14.0 million in interim 2005, and $14.3 million in interim 2006. CR/PR at Table VI-5.

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