Thomas Russell
HIGH POINT — Now that the U.S. government has distributed $21.8 million in duties collected on Chinese-made

wood bedroom furniture, recipients are  deciding how to spend the money left over after legal expenses and taxes.

Some will use the money to buy new equipment, or upgrade factories and manufacturing processes in order to enhance their competitiveness.

The funds were collected from Chinese bedroom producers not part of the U.S. government’s first administrative review begun on March 7 of this year. The duties were collected between June 24, 2004, and Dec. 31, 2012.

This is only part of the duties collected thus far. U.S. Department of Commerce and Customs and Border Protection officials could not say how much is still awaiting distribution.

The recipients are U.S. furniture makers that supported the government’s original 2004 antidumping inquiry. They include large public companies such as Stanley and smaller, private operations such as Moosehead Mfg. and Vaughan Furniture.

Some companies interviewed for this story said they didn’t support the antidumping investigation just for the money. Instead, they wanted to stem the flow of imports from China in an effort to protect workers’ jobs.

Still, the disbursement represents some financial relief for those struggling against a combined onslaught of imports and a slow retail environment.

Moosehead, for instance, is getting $202,000. Officials said last week that the company will use the money for new equipment, and to help cover the cost of shifting to a lean manufacturing process. It also plans to use some funds for marketing and a conversion of its health care program.

Stickley Furniture, which is receiving a $574,000 distribution, expects to net about $160,000 after legal expenses and taxes, said Chairman and President Alfred Audi. The company plans to spend far more than that on capital projects next year, including $1.2 million in improvements to its rough mill, $700,000 for a sander and planer for its fine mill, and another $1.8 million for an overhaul of its finishing plant.

After taxes, Vaughan-Bassett said it expects to net $2.4 million of its $3.8 million distribution. That money has already been spent on various capital improvements, including more than $7.7 million associated with a warehouse in Elkin, N.C., this year, and an additional $5.7 million in U.S.-made inventory to fill the facility.

Both initiatives are helping to expand and improve its VBX seven-day delivery program.

“Vaughan-Bassett’s $13.4 million investment will help us remain the most efficient bedroom producer in the United States,” said CEO John Bassett.

Other industry officials were less clear about how they plan to spend the antidumping monies.
Stanley Furniture received $5.3 million, the most of the 23 companies on the list. Net of related fees, its total distribution was $4.7 million, and it must pay taxes on that amount.

President and CEO Jeff Scheffer declined to offer specifics on how Stanley plans to spend the money, saying it will make disclosures in upcoming financial reports. He did note, however, that Stanley usually spends between $4 and $6 million on capital improvements each year.

“We don’t think of this money that comes into the business any differently than money that comes into the business through regular operations,” he said. “In this or any other case, we would first look to invest in the business to keep it competitive, and what’s left over is returned to shareholders through stock buybacks or dividends.”

Vaughan and Century executives declined to specify how their companies will spend the money. Vaughan received $1.15 million and Century $374,000.

“We intend to use any proceeds to make our business more competitive,” said Century CEO Bob Maricich.