The CEO of the company poised to close on AK Steel later this week told lawmakers that unless his company receives tariff relief, he will be forced to close the plant in Butler.
Cleveland-Cliffs CEO Lourenco Goncalves testified before the Congressional Steel Caucus in Washington D.C. last Thursday.
“I’m closing on the deal. I understand numbers and I know what to do. I need help,” Goncalves said. “The workers in Butler, PA need help. I’m talking 1,500 jobs in Butler and 100 jobs in Zanesville, OH that will be gone. And I promise you they will be gone, if I don’t get help.”
AK Steel is currently the only producer of grain-oriented electrical steel in the country and Goncalves says right now China is exploiting a loophole that allows them to import cheaper steel to Canada and Mexico—which then finds its way into the United States.
According to a press release from Rep. Mike Kelly’s office, the U.S. imports of grain-oriented electrical steel from China are assessed Section 232 tariffs under the Trade Expansion Act of 1962. But, Kelly argues that a loophole is undermining that tariff.
“The United States cannot afford to lose the one remaining producer for grain-oriented electrical steel for economic or national security reasons,” Kelly said in a press release.
The $3 billion sale of AK Steel to Cleveland-Cliffs is expected to close Friday.
Below is the full exchange between Rep. Mike Kelly (R-Butler) and Goncalves at the hearing.
Rep. Kelly and Rep. Troy Balderson (R-Zanesville, OH) sent a letter to the White House last Friday urging President Donald Trump to expand the Section 232 tariffs. To view the full letter, click here.
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