Steel Mills
ATI Will Close Midland Due to Costly Tariffs
Written by Sandy Williams
April 2, 2020
Allegheny Technologies will idle its operations at Midland, Pa., by the end of June 2020 due to the Section 232 tariffs. A&T Stainless imports semi-finished stainless steel slab products from Indonesia to produce 60-inch wide Direct Roll Anneal and Pickle (DRAP) stainless sheet products. The imported steel slabs are subject to 25 percent tariffs under Section 232 that have cost the company over $37 million since March 2018.
ATI holds a 50 percent share of A&T Stainless with joint venture partner Tsingshan Group. Last year ATI reported a $19.3 million loss for its share of the company.
Allegheny Technologies, a major supplier for specialty metals to Boeing and other aviation and defense companies, has been denied exemption from import tariffs by the Trump administration. Ironically, the Midland plant was closed in 2016 due to challenging international competition and then reopened as a 50-50 joint venture with its Chinese partner on March 1, 2018. The joint venture was approved just before President Trump enacted Section 232 tariffs on steel imports. On March 27, ATI filed its initial exclusion request on behalf of A&T Stainless.
The 70 employees at A&T Stainless, mostly represented by the United Steelworkers, have been notified of the impending layoffs. The DRAP will be idled in a manner that would allow operations to resume if tariff policies were substantially changed.
“The unfortunate impact on these hard-working employees is an unintended consequence of the blunt nature of tariffs,” said ATI President and CEO Robert Wetherbee. “We have no viable alternative to imports, yet have suffered unsustainable losses under this economic policy. Since March 2018, we have sought unsuccessfully to obtain a tariff exclusion, with our latest request still unanswered by the Department of Commerce. While we firmly believe we meet the criteria for an exclusion, we cannot wait any longer. Without a tariff exclusion, we have no choice but to idle the Midland operations.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.