SSINA Vice Chairman Carl R. Moulton Testifies Before Congressional Steel Caucus
WASHINGTON, May 26, 2011 /PRNewswire-USNewswire/ — Today, Carl R. Moulton, Vice Chairman of the Specialty Steel Industry of North America (“SSINA”), and Senior Vice President, International, Allegheny Technologies Incorporated, testified before the Congressional Steel Caucus. Attached is Mr. Moulton’s testimony.
About Specialty Steel Industry of North America
Specialty Steel Industry of North America (SSINA) is a Washington, DC-based trade association representing virtually all continental specialty metals producers, which include high technology, high value stainless and other specialty alloy products.
SSINA member companies include: ATI Allegheny Ludlum, Pittsburgh, PA and ATI Allvac, Monroe, NC (both Allegheny Technologies companies); Carpenter Technology Corporation, Reading, PA; Crucible Industries, Solvay, NY; Electralloy, Oil City, PA; North American Stainless, Ghent, KY; Outokumpu Stainless, Inc., Schaumburg, IL; Latrobe Specialty Steel Company, Latrobe, PA; Universal Stainless and Alloy Products, Bridgeville, PA; and Valbruna Slater Stainless Inc., Fort Wayne, IN.
Testimony of Carl R. moulton
before the congressional steel caucus
May 26, 2011
Good morning, Mr. Chairman and Members of the Congressional Steel Caucus. Thank you for inviting me to participate in this briefing.
I am Carl R. Moulton, Vice Chairman of the Specialty Steel Industry of North America (“SSINA”), and Senior Vice President, International, Allegheny Technologies Incorporated. SSINA’s member companies produce stainless steel, superalloys, high-nickel materials, electrical steel, tool steels, and other sophisticated, materials for critical applications. A list of our members is attached to my statement.
A. State of the Specialty Steel Industry
Last year, I reported to you that after several difficult years, we appeared to be at the bottom of the recession cycle, and things were turning up slowly. That process continued in 2010, with U.S. consumption for the year up about 31% over 2009. At the same time, as the U.S. economy improved, imports surged, taking a greater share of the U.S. market. Specialty steel imports were up 70% in 2010, more than double the growth rate of U.S. consumption. We continue to face challenges in capturing market share, creating good jobs for our employees, and fighting off unfair trade practices such as dumping and foreign government subsidiaries.
B. China’s Currency Continues To Be Significantly Undervalued
China’s undervalued currency remains a vexing problem. Virtually no progress has been made in this area over the past year. In effect, the Government of China subsidizes its specialty steel producers by keeping its currency undervalued by about 35%. In the meantime, China continues to build massive new capacity for producing stainless steel and other specialty metals.
SSINA appreciates the good work the Congressional Steel Caucus has done on the China currency issue, a special thanks to Chairman Murphy and Congressman Tim Ryan for pushing the China currency legislation.
C. Specialty Steels Are Critical To The National Defense
Last year, 37 members of this Caucus wrote the Secretary of Defense to ensure that the Specialty Metals Amendment is implemented consistent with the intent of Congress. The Amendment has ensured that suppliers of these critical materials have a core of guaranteed orders associated with specific military end uses.
Given the unique and changing applications associated with the nation’s defense programs, the Specialty Metals Amendment provides U.S. producers of specialty metals the incentive to invest in the manufacturing capacity, process technology, and research and development necessary to meet these evolving needs.
Any attempt to weaken the Specialty Metals Amendment through regulation or lax enforcement jeopardizes the ability and willingness of U.S.-based specialty metals producers to meet the demands of the military, leading to supply disruptions, as well as increased dependency on unreliable foreign suppliers. High paying U.S. jobs will also be lost.
We appreciate the important role this Caucus has played in preserving this law and ensuring its correct implementation. I know we can count on your continued support.
Thank you for the opportunity to appear before you today and for your support of our industry.
SOURCE Specialty Steel Industry of North America