What happens when a company loses one of its major international markets almost overnight?
Simcoa is Australia’s only producer of silicon metal and had been selling around 10,000 tonnes a year into the United States.
Then a US trade investigation resulted in additional duties approaching 40%, and Simcoa decided to leave the American market.
In this episode of Business Beyond Borders, Cynthia Dearin speaks with David Miles, Vice President of Sales at Simcoa Operations, about what happened behind the headlines and what comes next.
David explains how the US duties changed the economics of Simcoa’s business, why the company decided to leave the market, and how Western Australia’s electricity arrangements became part of a US subsidy investigation.
They also discuss the bigger questions raised by the case:
- What it means for Australia–US trade
- How much businesses can rely on government-to-government agreements
- How Simcoa plans to replace 10,000 tonnes of US sales by developing customers in India, South-East Asia and other markets.
The conversation goes inside the practical realities of rebuilding international sales: identifying customers, qualifying products, competing with Chinese producers, managing political and regulatory risk, and deciding which markets are worth pursuing.
