CEOs for the country's largest steel companies told the Congressional Steel Caucus Thursday that the government needs to take a three-pronged approach to save the industry from illegal trade practices -- improve its trade policies, invest in the workforce and finance improvements to the nation's infrastructure.
The CEOs of U.S. Steel Corp. and ArcelorMittal joined other industry leaders in the annual hearing in Washington, D.C.
U.S. Rep. Pete Visclosky, D-Merrillville, is vice chair of the caucus.
The leaders described an influx of steel imports that are taking up an increasingly larger percentage of the market, causing industry layoffs in Northwest Indiana and across the country.
They said today's imports China, Turkey and South Korea have surpassed the amount dumped here in the late 1990s that resulted in the bankruptcies of major steel players, including Bethlehem, Inland and LTV steel companies, all of which had mills in Northwest Indiana.
All three mills are now owned by ArcelorMittal.
"We're struggling," said Michael Rippey, president and chief executive officer of ArcelorMittal USA and chairman of American Iron and Steel Institute. "The challenge is the existence of the massive amount of unfair steel arriving at our ports every day.
"Both of our facilities in Northwest Indiana are doing OK, but as in 1998, the future is not bright for us," Rippey said.
He said China alone has 371 million tons of excess capacity looking for a home.
Visclosky said some foreign companies know exactly what fee they will have to pay if caught in illegal trade practices.
"It's the cost of doing business," he said.
Mario Longhi, president and chief executive officer of U.S. Steel Corp, said steel products imported into the U.S. by heavily subsidized, command-economies year-to-year have increased between 22 percent to 90 percent.
"The last time we were at these levels, nearly half of American steel companies disappeared. Today, across the country, once again, mills are idled," said Longhi. "Plants continue to be shut down. American workers are laid off. American steel companies are being irreparably harmed by illegal trade practices."
U.S. Steel recently announced as many as 752 employees at its Northwest Indiana facilities will be laid off by mid-May, including 83 probationary workers and 300 who work at the Gary Works coke plant, which will be permanently closed. Another 369 were laid off in mid-March due to the temporary idling of U.S. Steel's East Chicago tin mill.
Longhi said the government needs to look at currency manipulation and the injury factor to our mills as it writes new trade laws.
He added that long-term funding of the nation's transportation infrastructure, including roads and bridges, would also help the industry. He said $114 billion a year spent on infrastructure improvements would provide for 2.74 million jobs.
Rippey also pointed out that the average age of the American steelworker is 50 and another challenge facing the industry is making sure the people who replace these workers when they retire have the skills needed for the job.
"The educational system must be up to the challenge," he said.
U.S. Rep Tim Murphy, R-Pa., chairman of the steel caucus, said more than 200 people are out of work in his district due to steel dumping.
"We need to reverse the trend of steel layoffs. If that doesn't happen, more good-paying steel jobs will be lost and the communities will be left to pick up the pieces," Murphy said.