
US senator Mr Charles Schumer visited Auburn's Nucor Steel to call for the reinstatement of a rule that all military vehicles and equipment be made 100% domestically.
The senator said that the purchase of steel and other raw materials from Korea, Japan, India and China to build military equipment has worsened the domestic jobs market and puts national security at risk.
In 2009, at the height of the military maneuvers in Iraq and Afghanistan, the US Department of Defense slackened the rule, citing high demand for products, requiring that only a portion of the work be done in the US for the product to qualify as domestically produced.
Mr Schumer said that "This rule is stealing jobs from Nucor and other manufacturers across the state. The dropping of the rule was wrong from the start, allowing Chinese steel to undercut US prices. China has been manipulating the value of their currency allowing them to continue offering prices that domestic manufacturers can't compete with."
Mr Schumer underlined his support for a bill aimed at stemming currency manipulation by foreign trade partners, saying China doesn't play by the rules. The legislation passed the Senate and is now in the hands of the House.
Now that the Iraq war has officially ended and a troop drawdown is scheduled in Afghanistan, Mr Schumer said it's time to change the rule back to its original 100% requirement. He added that "The demand is dropping, they don't need as much steel for military purposes anymore. Now is the time to reinstate the rule to require steel from melting to the final product be made in America."
The senator said the DOD is currently considering the policy change and implored US Defense Secretary Mr Leon Panetta to reinstate the requirement.
Although Nucor's Auburn mill only produces steel products used in construction applications, such as steel rebar for supporting concrete, the company provides raw materials to other manufacturers that produce armor plating.
Rochester based Klein Steel does purchase raw materials from other Nucor sites and uses them to manufacture armor for vehicles.
Nucor's local general manager Ms Maryemily Slate said reviving the former requirements would benefit the company. She added that "It would have a tangible effect on the plant. Nucor plays a part in the fabrication of plates at Klein, so if their orders increased, so would ours."
Ms Slate said despite losing 50% of its market during the economic recession, Nucor has been able to reduce costs and avoid layoffs.
(Sourced from www.auburnpub.com)










