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Schumer noted that steel companies across the Empire State
utilize Nucor steel, whether its formilitary plate purposes or
simply for raw material supply. Klein Steel, with several locations
in
Western New York, utilizes much of Auburns materials and both
Klein and Nucor agree thatsteel made in the U.S. would create more
jobs here at home. As Nucor continues to supply,
considers expanding, and diversifying its production line in
Auburn and across America, it takes
its other steel partners goals into mind, often basing
production off their demands. Many areworking to hone in on the
defense industry, which is why Schumer is seeking to ensure
thatforeign steel melted abroad does not undercut the ability of
U.S. producers like Nucor.
Prior to 2009, the Department of Defense was required by law to
purchase military steel that was
100% made in the U.S. However, due to the increase in demand for
steel in light of the wars inIraq and Afghanistan, the Defense
Department dropped the requirement, inviting competition
from China and other global competitors who do not abide by the
same rules as U.S.manufacturers like Nucor and its subsidiaries and
customers. Chinese companies are notorious
for undercutting U.S. prices on a range of goods by manipulating
and devaluing their currency.Schumer is continuing to press for a
bill that would fight back against currency manipulation.
The legislation has passed the Senate, and Schumer is continuing
to press for House passage sothe bill can be sent to the
President.
Schumer said today that American taxpayer money should support
American jobs and
manufacturers, particularly in national defense matters, and
should not be sent overseas at theexpense of Central New York
companies. He noted that the country should also not be
dependent
on foreign producers for equipment and products that are
essential to our national security.Relying on foreign countries to
produce our militarys armor steel plate opens up the
possibility
that an embargo or the end of production could seriously disrupt
our military supply chain,putting troops and missions at risk.
The FY11 Defense Authorization Bill required the Defense
Department to re-evaluate itsdefinition of what constituted
domestically produced specialty metals like armor steel plate.
The Department of Defense held a public comment period at the
end of 2011 to hear from thepublic, industry, and lawmakers. Now,
the Defense Department is deliberating on that input and
expects to report on their policy later this year. According to
the Congressional Steel Caucus,while the Defense Department has
claimed that its regulatory change was developed in response
to insufficient domestic steel making capacity for armor steel
plate, to the best of our knowledgethere has been no significant
shortage of armor steel plate, even in periods of critical
demand.
Additionally, in the event of any supply concerns, there already
exists a proven statutory waiverprocess. We would also like to
point out that the past several years have seen new entrants in
the
market, further increasing domestic capabilities for the
production of armor steel plate from meltstage through final
processing.
Nucor Corporations success and rapid expansion began in 1955,
when it was named Nuclear
Steel. It was during this era, the Korean War, when Nucor began
its partnership with theDepartment of Defense, supplying much of
the armor back then, too. In 1969, the model of the
company changed and they expanded production to accommodate
other steel companies,becoming the major raw material supplier that
the company is today, with locations across the
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country. Nucor proudly holds the spot as the largest producer of
steel in the U.S and toutsroughly 20,500 employees in all.
In light of the countrys ability to meet the militarys demand
for steel and its potential impact on
Central New York and Upstate New York jobs, Schumer is pushing
the Defense Department to
once again require that military steel be made from start to
finish in the United States.Reinstating the requirement could be a
boon for steel producers across the state, especially
NucorCorporation.
>>>>>>>>>>>>>>>>>>>>>>>>
A copy of Schumers letter to the Secretary of Defense appears
below:
The Honorable Leon PanettaSecretary of DefenseDepartment of
DefenseOffice of the Secretary
The PentagonWashington, DC 20301
Dear Secretary Panetta,
I write concerning the Department of Defenses reconsideration of
its definition of produced as it
relates to the Departments procurement of armor steel plate and
urge you to return to theDepartments prior 35 year policy that
required specialty metals like those used in armor steel plate tobe
entirely melted and produced in the United States.
Indeed, the FY11 National Defense Authorization Act required the
Department to reevaluate the policy
it adopted in 2009 which allowed steel melted by foreign
producers to be considered domesticallyproduced merely so long as
the late stage finishing was performed in the United States. To
label thisforeign steel as a domestically-produced product is
particularly troubling when you consider that themelting stage is
undoubtedly the most critical step in the production of quality
armor steel plate andaccounts for over two-thirds of the products
capital and labor costs.
This policy not only runs counter to decades of procurement
practices which required the melting becompleted domestically, but
could jeopardize national security as the militarys steel plate
supply chainwould be sourced from foreign sources. Just as
importantly, the Department should look to Americanworkers and
American Steel manufacturers to protect our troops, particularly
when there is an ampledomestic capacity to produce steel armor
plate.
Steel armor plate is vitally important to our nations war
fighter and must be manufactured to thehighest quality to ensure
the safety of our troops and our nations defense. As you deliberate
on thispolicy, I strongly urge you to once again adopt the
Departments former long standing policy to requireour military
source only 100% US-made armor steel plate in order to decrease our
dependence onforeign suppliers and support our domestic
manufacturing base.
