Steel company hanging on

[TerryinMD]

RPM,

I understand what you're saying and it seems to be the popular current strategic plan. Placing the burden on our future generations then removes any strategic planning. Our business planners have moved heavy manufacturing to third world nations to take advantage of cheaper operating costs and environmental regulations.

What if the fragile balance of the global econony tips, this could happen very quickly. What effect would that have on the US economy - Manifold!! /w3tcompact/icons/sad.gif How long would it take for US businesses to rebuilt and refit heavy manufacturing? /w3tcompact/icons/shocked.gif

I have been pondering these issues occasionally and. frankly, it scares me. And, I really don't have any answers, just more questions.....

Terry

 

[Molerj]

There is a rally going on in Washington DC for support of of section 201 of the Fair Trade
Act of 1974. The steel industry is lobbying for tariffs of 40% for a 4 yr. period. President
Bush is to make a decision by March 6th. The employees, families & friends of Wheeling
Pittsburgh Steel & Weirton Steel have chartered 70 buses to make the trip
to DC. Hopefully for the sake of our area something good will come out of this.

 

[TerryinMD]

Molerj,

Hey good luck to you guys... /w3tcompact/icons/smile.gif

I heard about this on the news this morning and I thought about this thread.

Terry

 

[Anonymous Poster]

What good will a tariff do, if the steel plants and the Unions don't agree to modernize. The rest of the world is making steel with US technology, and selling it here, while we make steel with antique technology.
Tax laws need to be changed too, to allow rapid depreciation of modularized plants. Say a 3 year depreciation, and if the module becomes obsolete, it can then be updated.
Steel plants need to be compeditive, not protected. Protection cannot last forever.
Something is sure as he11 wrong when Sweedish steel produced by electrolosys can be sold in Pittsburg for less money than locally produces steel.
Steelworkers have supported and even financed the Democrats for years, and the Democrats have sold them out.

 

[Molerj]

<font color=red>What good will a tariff do, if the steel plants and the Unions don't agree to modernize.<font color=black>
Franz, what makes you think we haven't been modernizing? That may have been the case
20 years ago, but I can tell you there has been enoromous amounts of money spent at our
plant. ie; continuous slab caster, rebuilding & upgrading of blast furnaces, upgrades at the
finish mills etc.
<font color=red>Steel plants need to be competitive, not protected.
<font color=black>Here again, our plant (8th largest integrated steel producer) is one of the lowest price per
ton mills in the US. We are producing far more steel with way less men than 5 yrs. ago. The
steel industry is not looking to be 'protected'. They are asking for fair trade. Steel is being
illegally dumped in this country at below market prices & that is a blatant violation of US trade laws.
<font color=red>Something is sure as he11 wrong when Sweedish steel produced by electrolosys can be sold in Pittsburg for less money than locally produces steel.
<font color=black>You are exactly right & that is what this is all about. One other thought. the US steel mills have far more stringent EPA guidelines to follow than the overseas countries. We spend millions to follow
these rules & stay within compliance on these issues. These laws are not in effect in other countries. That is another advantage that foreign steel has. I've been a steelworker for 25 yrs. My father worked in the mills for 38 yrs. I have seen alot of things happen over that time span, but this is by far the worse it has ever been.
I'll get off my soapbox now. Just thought I would try to inform some of those that do
not understand the plight of the steel industry. (Just in case you didn't read the beginning
of my post, the Union has taken a 27 3/4% cut in wages in the last 6 mos.)

 

[TerryinMD]

The key determinates are the last two statements.

The US has been made the bogeyman on world pollution and is expected to have to pay for its clean air and everyone elses. The pollution created in the newly industrialized countries probably far exceeds what we have ever created. My thoughts on this are that there are more people and goods required to support the current world infrastructure hence more pollutants are being created. Additionally, those countries DO NOT have any pollution controls. Talk to anyone who has gone over to China or India in recent years and have visited the industrialized areas. They are worse than Pittsburgh was in the late 40's.

My dad and most of the men I knew when I was growing up worked in the steel mills in Pittsburgh. When I was a kid, the general thoughts were that steel was king and the industry would be strong. Well, go to Pittsburgh now and you can only find lots of open areas where the mills use to be. The riverfront property is being developed and you will never ever see steel manufacturing to the extent as it was in Pittsburgh or anywhere else in the US for that matter.

If the world economy was open and the US could dump products just like other countries, could you imagine what our productive capabilites could do to boost our economy and employment numbers. However, we're held back because we're the nice guys and try to help other developing nations. When, in fact, those developing nations just take what they can from US with out ever saying thank you and supporting us when we need them. Oh yes, our friends...

Terry

 

[MikePA]

I think one of the things 9/11 should have taught us is some of our industries are related to national security and the steel industry is one of them.

 

[Wingnut]

Ron,
I'm all in favor of keeping production in this country and believe you when you say the rust belt has been modernizing ... but I have 2 questions.
Do you really believe that EPA requirments are tougher than requirements in Swden - the most regulated and socialist (not communist) country in the world?
A tariff is going to penalize those you accuse of dumping? Two comments here .... dumping is selling under the cost of production ... like that can go on for a long time ... and tariffs are a tax paid by the buyer - in other words, a tax paid by Americans which goes to the government as revenue.
So ... who's more anti-American? Someone who buys off-shore manufacturere materials or someone who sticks other Americans with extra taxes?

 

[Molerj]

<font color=red>Do you really believe that EPA requirments are tougher than requirements in Swden
<font color=black>Wingnut, That I don't know & I wasn't only talking about Sweden, they very well may have
strict EPA requirements. As Terry said others definitely don't.
<font color=red>Two comments here .... dumping is selling under the
cost of production ... like that can go on for a long time ... and tariffs are a tax paid by the buyer - in other words, a tax paid by Americans which goes to the government as revenue.
<font color=black>Subsidized steel products (Dumping) has been entering this country for a long time. That is what the International Trade Commission (ITC) determined. The ITC's findings were part of a Secton 201 investigation
undertaken & completed in 2001.
<font color=red>who's more anti-American? Someone who buys off-shore manufacturere materials or someone who sticks other Americans with extra taxes?
<font color=black>I don't understand what you mean by that. Buy American or legally imported steel & you won't get stuck with extra taxes. Also let me point out that the Steel industry is not trying to stop all imported steel from entering this country, just the illegally dumped steel.

 

[TBone]

<font color=blue>"dumping is selling under the cost of production ... like that can go on for a long time"</font color=blue>

You're right, private industry cannot sell goods at a loss for long but when those goods are subsidized by their government it can go on indefinitely.

In September Bethlehem Steel, US Steel LLC, LTV Steel and National Steel Corporation filed trade law actions against several countries, including Sweden for illegally "dumping" their heavily subidized steel in the US.

<font color=red>"We as an industry have invested heavily with our own funds to create a modern and highly competitive domestic industry, but American companies and workers should not be expected to compete against foreign steel companies whose apparent business model is to rely on subsidies from their governments and protected home markets" said Robert S. Miller, Chairman and CEO of Bethlehem Steel.</font color=red>

Amen, Mr. Miller. American workers (and American Companies) can in most cases compete with anybody on a level playing field.