 |
||
   |
 |
 Investor Relations   WEIRTON STEEL'S CEO FASHIONS LEGAL ACTION WITH OTHER INDUSTRY LEADERS OVER IMPORT CRISIS SOME U.S. STEELMAKERS ALREADY CURTAILING OPERATIONS For Immediate Release During the meeting, the companies directed their legal counsel to continue preparing unfair trade cases and agreed to file the cases within the next 30 days. So far this year, foreign steel is entering the U.S. at a record pace with many domestic producers recently adjusting operations in response to the imports. "There is ample evidence that illegal imports are already taking their toll of the U.S. steel industry's profitabilities and on our employees' jobs. We are seeing the beginning of a crisis situation. Our industry is being harmed and the trade issues must soon be resolved before the situation worsens," Riederer said. In addition to Weirton Steel, others joining the protest include Bethlehem Steel, U.S. Steel, LTV Steel, Geneva Steel, Gulf States Steel, Steel Dynamics, Inland Steel, California Steel Industries and the United Steelworkers of America (USWA). Riederer and the other CEOs were joined by USWA President George Becker to provide evidence of the problem to U.S. Treasury Secretary Robert Rubin and U.S. Commerce Secretary William Daley. "The steel companies and the USWA made it clear to these officials there must be both industry and government actions to arrest the surge in imports," Riederer explained. During the first half of 1998, for example, imports of hot rolled steel were up 27 percent over the first six months of 1997. In June of this year, total steel imports increased 42 percent compared to June 1997. Among the many countries importing to the U.S., Japan and South Korea are leading the way. During the first half of 1998, Japanese imports were up 114 percent and South Korean imports increased 90 percent over the same period one year ago. Riederer said an overabundance of steel worldwide, coupled with faltering economies, especially in Asia, has countries looking for a place to dump their steel to make money. He said the countries have targeted the U.S. and the low-cost imports are undercutting U.S. prices and adversely affecting production. "There is nothing wrong with free and fair trade. However, unfair trade practices such as illegally dumping steel in the U.S. at prices well below importers' home market prices or below their costs is wrong. Our government must protect our industry when negotiating these issues with other nations and we must press our government to maintain, improve and enforce trade laws," commented Riederer. Roger Schagrin, trade attorney to Weirton Steel, said several U.S. trading partners such as the European Union, Mexico and Chile are taking government action to address the import surges in their own markets. He added, "It is time for the U.S. to take action."
Weirton Steel Corp. Media Contact: Weirton Steel Analysts Contact:
|
