Bethlehem CEO Testifies at Hearing on Plate Imports
Bethlehem Steel Corporation
For Immediate Release
WASHINGTON, D.C., December 14, 1999 � Citing a massive surge in dumped and subsidized steel plate imports in 1998 and 1999, the chairman of Bethlehem Steel Corporation this morning called upon the International Trade Commission to "enforce the rules against unfair trade."
Curtis "Hank" Barnette, in his testimony in a statement filed with the Commission, described the effect of the massive surge of low-priced imports that "drove down U.S. prices, reduced our operating rates and shipments, and caused our order books to collapse." The industry and Bethlehem suffered severe financial losses "at the very time that we should be benefiting from our efforts to improve our productivity and reduce costs so that we can continue to compete head-to-head with any steel producer in the world," Mr. Barnette said.
From 1996 to 1998, dumped and subsidized plate imports increased by more than six fold. Prices for these imports dropped sharply, the Bethlehem chairman said, by more than $120 per ton or 25 percent during the period of investigation by the International Trade Commission.
The surge occurred just as Bethlehem was completing its merger with Lukens Inc. The acquisition of Lukens was part of "our continuing efforts to improve our production processes and technology while broadening our product mix and reducing our costs," Mr. Barnette explained.
Domestic producers, including Bethlehem have filed trade cases affecting plate products, and, "while the filing of cases has reduced imports, prices remain very depressed. So the question for the Commission is whether this industry is being injured by dumped and subsidized imports. The clear and simple answer to that question is �yes,�" Mr. Barnette said.
Solutions to the unfair and injurious practices in international steel trade require that the rules must be observed. The foundation of open markets has always been the assurance that injurious trade practices, such as dumping and subsidization, will not be tolerated. "We ask that the Commission enforce these rules and allow the domestic industry to compete in its own market on fair terms. We are confident that given this opportunity, we can compete successfully," the Bethlehem chairman concluded.
Also testifying with Mr. Barnette at this morning�s hearing were George Becker, president of the United Steelworkers of America, and other witnesses in support of the domestic plate industry.