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Navy Denies That Federal Regulations Apply to Ansonia Copper & Brass Products

Posted on: Wednesday, 21 December 2005, 21:00 CST

By Rob Varnon, Connecticut Post, Bridgeport

Dec. 22--While foreign-made products that compete directly with those of Ansonia Copper & Brass appear to be finding their way onto U.S. Navy ships, the Navy denies that federal regulations designed to encourage the use of American manufactured goods apply to ACB.

John Barto, vice president and general manager of Ansonia Copper & Brass' Waterbury-based tubing division, said Wednesday the company's sales to shipyards where Navy work is being conducted is being hurt by products from Korea and India, despite laws designed to protect U.S. manufacturing.

Barto took his concerns to Rep. Rosa DeLauro, D-3, who has since taken up the cause and is arranging for Ansonia Copper managers to meet with Navy officials to discuss the problem sometime in February.

Central to this issue is how the Navy is interpreting sections of "The Buy American Act," that states U.S. makers of specialty metal products should be given preference when awarding contracts.

In August and September, the Navy and DeLauro exchanged letters discussing the situation.

"As I understand it, the regulation in question clearly states, 'Preference for domestic specialty metals should be given to metal alloys consisting of nickel, iron nickel and cobalt base alloys.' ACB is the only domestic producer of large diameter copper-nickel tubing that is used in the construction of submarines, aircraft carriers and various other U.S. Navy ships. Yet, several prime contractors currently purchase these ACB products and materials from non-qualified foreign suppliers ..." DeLauro wrote to the Navy.

The Navy's responded the Act does not cover ACB's product because the definition of specialty metal is "metal alloys consisting of nickel, iron-nickel, and cobalt base alloys containing a total of other alloying metals [except iron] in excess of 10 percent. The copper-nickel tubing is a copper base alloy comprised of seventy-percent copper. A copper base alloy is not included in the definition of specialty metals." DeLauro said this definition flies in the face of the Act's intention to protect American manufacturers.

In the meantime, ACB is facing contentious negotiations with the Steelworkers of America Local 6445 over cutting more than 30 jobs, scheduled for later this month.

Barto said he hopes management can settle this issue with the Navy and prime contractors, especially since the price differential between ACB and the Korean and Indian companies is not that great.

He pointed out that, because ACB is closer geographically to the end-users, it can deliver the product faster and save the primary contractors money by reducing the inventory they have to keep on hand.

ACB's case hinges on a lot of factors.

First, it has to prove that the products are coming from overseas, but the U.S. Department of Labor may have helped the company by certifying that any employees laid off will be eligible for special assistance from the government because foreign competition has eroded its business.

And ACB might improve its chances if it can prove that it is the last remaining American maker of large copper tubing.

Barto said he can't think of any American competitors to ACB and a Web search did not find any U.S. companies that actually make the product here.

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Copyright (c) 2005, Connecticut Post, Bridgeport

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Source: Connecticut Post

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