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ZC ZCO1 COATESVILLE PA AUGUST 23
THE AMERICAN STEEL IN DUS TRY IS SUFFERING ONE OF THE WORST
THE NATION'S FIRST COMMERCIAL.COAL GASIFICATION PLANT WILL BE
THE. LOSS OF THE BEULAH OPPORTUNI TY FOR THE AMERICAN STEEL INDUSTRY'AMOUNTS TO OVER 2, DD2 TONS OF HEAVY PLATE STEEL. BUT THE.. SI GUIFICANCE OF THE SITUATI ON GOES : FAR BEYOND STEEL TONNAGE. THE AMERICAN STEELWORK ER 13 A PROUD AND PRODUCTIVE MEMBER OF SOCI ETY. HISTORY HAS SHOWN TIME AND TIME AGAIN THAT. AMERICAN STEELWORKERS MEET OPPORTUNI TI ES AND CHALLENGES WITH FERVOR AND EN THUS I ASM. HOWEVER SUCH A CHAVCE TO PARTICIPATE IN OUR NATI ON'S FIRST STEP TOWARD EN ERGY. INDEPENDENCE HAS BEEN SNATCHED AWAY BY A FOREIGN STEEL PRODUC ER. T:LE CHALLENGE WAS LOST. WI THOUT A FAIR BATTLE.
AS PRES I DENT OF LOCAL UNI ON 2295 OF THE UNITED STEELWORKERS OF AMERICA, I HOPE, THROUGH YOUR OFFICE, THIS I RONIC 31 TUATION CAN BE RECTIFIED TO: THE SATISFACTION OF THE AMERICAN STEEL WORKER AND THAT AMERICA'S ENERGY NEEDS FOR THE FUTURE WILL BE BUILT ON A FOUNDATI ON OF AMERICAN STEEL AND BY AMERIC AV WORKERS .
CHARLE W. WITTE JR. PRES I DENT LOCAL UNION 2295. OF THE
UNITED STEELWORKERS OF AMERICA: NNNN
ZC ZC 01 COATESVILLE, PA. 3/27/30
[ Ai VI RING YOU TODAY ABOUT 5 TEELWORKERS JOBS THAT
1 AV E LEARNED THAT AN AMERICAN COMPANY, CHICAGO BRI DGE AND I RON, WHICH BID ON THE FABRICATI ON OF 14 GAS IF I ERS FOR THE BEULAH COAL GASIFICATION PLANT, ' LOCATED IN NORTH DAKOTA, WAS UN DERBI D BY HITACHI: LTD., OF JAPAN. THIS PLANT WILL BE BUILT FOR AMERICAN NATURAL RESOURCES CORP. WITH DEPARTMENT OF ENERGY SUPPORT THROUGH GOVERNMENT GUARANTEED LOANS. IT IS THE FIRST COMMERCIAL COAT GAS IFICATI ON PROJECT TO BE BUILT UNDER YOUR SYNTHETIC FUELS ACT.
I AM DEEP LY CONCERNED ABOUT THIS PROJECT BECAUSE THERE
MR. PRES I DENT. THERE ARE OVER 200 MEMBERS OF MY LOCAL WHO ARE. LAID OFF BECAUSE THERE ISN'T ENOU GH BUSINESS COMING TO LUKENS. WE CAN USE THE WORX THIS PROJECT CAN GEN ERATE AND WOULD APPRECIATE THE OPPORTUNI TY TO PARTICIPATE IN FUTURE PROJECTS UNDER YOUR SYNF U ELS PRO GRAM AND SUPPORTED BY QUA TAX DOLLARS.
IT IS MY HOPE THAT YOU WILL USE YOUR OFFICE TO SEE THAT TH ES E 14 GAS IF I ERS ARE BUILT IN AMERICA WITH AMERICAN LABOR AND AMERICAN STEEL I ALSO ASK THAT YOU USE YOUR INFLUENCE TO SEE THAT ADEQUATE BUY AMERICAN" PROVISIONS. ARÉ ADDED TO THE SYNTHETICFUELS LEGISLATI ON TO. KEEP FUTURE JOBS IN AMERICA.
BENJAMIN J. PILOTTI
LOCAL UNI ON 1165 : 835491 LÜKENS COAT
CC: HON. CHARLES W. DUNC AN. JR.
HON. JOHN H. HEINZ III
HON. RICHARD T.. SCHULZE
The Board of Commissioners was very distressed to hear that the Nation's first commercial coal gasification plant, which is being built in Beulah, North Dakota, with loans guaranteed by the Department of Energy, will be constructed using Japanese steel.
We are concerned about this issue from a local industry standpoint and a national policy perspective. From the local standpoint, Chicago Bridge & Iron was the lowest American bidder, and they lost the bid to the Japanese competitor. Lukens Steel Company, one of Chester County's largest employers, and the potential domestic provider of the steel plates for the project, recently was forced to lay off several employees due to the economic slump currently being experienced by the entire domestic steel producing industry. This diversion of business to foreign manufacturers and producers only adds to the problems of the domestic steel industry and its workers.
From the national policy perspective, we are concerned that this, the first project funded by the Windfall Profits Tax, a tax which came about because of America's dependence on imports, will be used to further increase our dependence on imports. The State of Pennsylvania requires that all projects using State funds use American produced steel. We would
suggest that you adopt this policy on a national basis, and in the meantime, urge you to direct the Department of Energy to reconsider the acceptance of the Japanese bid.
We appreciate your prompt attention to this matter.
We are most urgently concemed about the very first project initiated under the Synthetic Fuels Act to be financed with proceeds from the windfall profits tax. his project, as you know, is located at Buelah, North Dakota and is designed to be a cal gasification plant. Our concem is that the private consortium which is developing this plant using federal funds apparently intends to purchase over 2,000 tons of Japanese fabricated steel to construct the necessary pressurized vessels. At a time when every American is consemed about jobs and the overall health and well-being of our economy, it seems unthinkable to us that the fabricated steel used in this project would come from offshore rather than fram domestic sources. It is our understanding that you will be receiving communications on this subject from labor unian officials, rank and file union members and management officials. It is a conem which arts across all political considerations and, in our opinion, necessitates your swift response and action. American steel produced by American workers must be used, not only in this but in similar future projects. It is our further understanding that the Japanese interests submitted a bid same 20% below the nearest domestic supplier; however, an analysis of the merits of this situation would indicate that this lower bid was achieved through a drastic reduction to an unrealistic figure of the transportation costs of shipping this offshore steel. This raises some questions regarding dumping in the American marketplace. But, most importantly, the issue of costs is transcended by the need to create jobs and preserve jobs by bolstering the well-being of our vital domestic steel industry. We strongly urge you to examine this situation along with appropriate officials in your Aðninistration. We believe your conclusion will be that a more equitable "Buy America" criteria should be used at Buelah.
Richard S. Soweiker, U.S.S.
John Heinz, U.S.S.
Robert S. Walker, M.C.
Richard T. Schulze, M.C.