Aluminum maker urges action by president

Tuesday, February 27, 2018

MARSTON, Mo. - Southeast Missouri's industrial future may well be sitting on President Donald Trump's desk awaiting his decision.

Recently the Commerce Department forwarded a report on the status of aluminum and steel production in the United States to Trump. Among the Section 232 report findings is production of high-quality aluminum alloy needed for military aerospace and infrastructure is insufficient and puts the nation at risk.

According to the Department of Commerce's public affairs department, the report determined from 2013 to 2016 the U.S. aluminum industry employment fell by 58 percent with six smelters shutting down and only two of the remaining five smelters operating at capacity. Meanwhile, aluminum imports have risen 90 percent and the Commerce Department has brought trade cases against several nations for the dumping of aluminum in the U.S. market.

The findings come as no surprise to officials at Magnitude 7 Metals, the former Noranda aluminum smelter at Marston, The plant, which shut down in 2016, could be revitalized along with the area's economy if Trump takes action, officials said.

In a letter to Trump, Bob Prusak, Magnitude 7 Metals CEO, called on the president to act quickly and aggressively.

"The Commerce Department Section 232 report concluded that the current situation puts at risk our national security needs and ability to respond to a national security emergency. The findings of the report are clear, as is the need for action," Prusak wrote. "I urge you to act quickly to protect our country and our people by limiting imports and ensure that primary aluminum producers can restart capacity that has been idled, expand existing production and ensure that the sector, and the thousands of workers it employs can produce the products our nation needs."

Prusak noted that the local smelter was one of those shut down due to "unfairly traded aluminum imports." The shutdown not only impacted the 900 workers and their families but also the entire region, he added in his letter.

"With your leadership and a broad and comprehensive final remedy, we are confident that we can revive the Southeast Missouri smelter and the entire U.S. aluminum industry, restore the communities that depend on them and protect our national security," he wrote.

Now, local company officials are following Prusak's lead and writing to Trump and their legislative leaders, in particular Eighth District Congressman Jason Smith, about the need to revitalize aluminum production in the U.S.

Steve Rusche, Magnitude 7 Metals site manager, and other plant officials are also contacting local community and school leaders urging them to write Trump and Smith about taking the recommendations of the Section 232 report.

"I think it helps to write letters or call their congressman. Congressman Smith has the president's ear and I think it is good for him to hear from his constituents and know how they feel," Rusche said.

According to Smith's communication director Maggie E. Starks, the congressman believes the domestic aluminum industry can be viable once again, including in southern Missouri.

"Rep. Smith initially called for the 232 report and then stood with President Trump last year in the oval office to sign the order expediting the conclusions of that study which were released last week and show the impact unfair foreign practices have had on the domestic aluminum industry. Rep. Smith has been pushing for the needed changes in U.S. trade policy, the needed regulatory relief, and changes to our tax code because he knows the domestic aluminum industry can succeed in this area," Starks said.

The Commerce Department Section 232 report noted increased tariffs should be considered as well as imposing a quota on imports.

"We are hoping the impact would be to create a fair, level trading field with our trading partners," Rusche explained. "For America I think it will bring back and revitalize the aluminum and steel industry. I see it bolstering the economy so a lot of companies like Magnitude 7 could reopen."

There is some concern from other industries.

The American Soybean Association has repeatedly noted the potential for retaliation by China, which purchases approximately one third of the soybeans grown in the United States at a value of more than $14 billion. ASA President John Heisdorffer issued a statement recently which said the Chinese specifically identified U.S. soybeans as a target for retaliation. "The barriers that retaliation would create will add significant further injury to an already-hobbled farm economy," he added.

Rausch acknowledged the concerns but said he believed a fair and equitable arrangement can be reached to benefit all sides.

"I think China has developed to the point where they will feed their people," he said. "They will realize that unfair trade is something the U.S. will not tolerate."

Rausch urged those who would like to voice their opinion on the Section 232 report and its impact to write to Rep. Jason Smith at 1118 Longworth Building, Washington, D.C. 20515, or contact him by e-mail by going to his website, www.jasonsmith.house.gov and choose contact.

Letters to Trump can be addressed as follows: The White House

1600 Pennsylvania Avenue NW, Washington, DC, 20500. Writers should include a return address on the letter as well as the envelope. To send an email go to www.whitehouse.gov/contact.

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