A top officer of the International United Steelworkers has accused Duferco Farrell Corporation of using despicable and blackmail tactics to escape the Buy American provision of the federal stimulus package.

In a letter to the editor appearing American Metal Market, Mr Tom Conway VP of International USW said that Duferco has been complaining the Buy American provision is placing a tremendous burden on the company and will force the layoffs of its 600 USW workers. He added that "This unnecessary and unwarranted threat is despicable."

Duferco’s Farrell plant buys slabs overseas and then rolls them into steel coils. The company has said it does that because the slabs it needs are generally not available in the US.

Mr Conway noted that the plant is a JV between Duferco Farrell and OJSC Novolipetsk Iron & Steel Works. NLMK owns an electric furnace shop at the Port of Indiana operating as Beta Steel Corp. and melts steel into slabs which Duferco can use to meet the Buy American requirements.

However, Mr Conway said that Duferco contends that's not the best solution as it prefers 10 inch slabs rather than the 8 inch slabs produced by Beta Steel. Another American steel producer, which he declined to identify, also is willing to sell Duferco 10 inch slabs.

He added that "I've talked to American steelmakers willing to sell Duferco steel at market prices. I know what prices these companies are offering Duferco because the companies have told me what they are. The prices are probably below the cost of production because people just want to generate volume right now."

(Sourced from www.sharonherald.com)