Tariffs could close Beaver County steel plant
Tariffs levied by President Donald Trump could close a metals company that reopened after Trump promised to bring the steel industry back to Pittsburgh.
Danielle Carlini, general manager of ATI Metals, said the producer of flat-rolled steel reopened the Midland, Beaver County, plant in January 2018 after closing in October 2016.
“Based on President Trump's economic policies and a joint venture, we established to secure supply for the 60-inch stainless slabs we needed for production,” Carlini said. “We believed we'd be able to successfully operate the Midland plant.”
In April 2018, Trump instituted his 25 percent tariffs on steel. That left ATI Midland without an economical way to purchase stainless slabs, as domestic producers are too expensive and the overseas slabs that previously were affordable became subject to the tariff.
“Since April 2018, we have paid approximately $40 million in tariffs, impacting our ability to operate profitably and invest in growth,” Carlini said.
The company requested an exclusion to the tariff from the U.S. Department of Commerce, but was denied even though the company demonstrated it has no viable alternative to the import, as required.
ATI has again requested an exclusion from the tariff. If it is again denied, the company will close and leave 100 employees without jobs.
A closing would also affect 200 contractors, the company said.
“We cannot continue operating at a loss,” Carlini said. “We are working through the process and working hard to make the administration aware of ATI's situation.”
She said the company does not want to make its Midland employees victims of the trade war.
“We look forward to a positive conclusion,” she said.
Steel manufacturing has been ongoing at the site of the Midland plant for more than 100 years.
ATI purchased the operation in 2004, Carlini said.
