Made in America: Steel executives ask Congress for anti-dumping protection

Editor’s note: Each Sunday, Talk Business & Politics provides “Made In America,” a round-up of state and global manufacturing news.
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STEEL EXECUTIVES GO TO WASHINGTON, ASKS CONGRESS FOR ANTI-DUMPING PROTECTION
Chief executives from five of the leading steel companies went to Washington, D.C., last week to push Congress and U.S. trade offices to end unfair foreign trade practices they say have caused an increase in steel imports resulting in the loss of more than 13,000 jobs in the industry this year. They said the government needs to dramatically improve policies on trade. The Steel Caucus is chaired by Tim Murphy (R-PA) and vice-chaired by Rep. Pete Visclosky (D-IN).

The group also testified at hearings of the Office of the U.S. Trade Representative (USTR) and the Department of Commerce (DOC) that the U.S. government must vigorously enforce U.S. trade laws; not give in to Chinese demands that it be automatically graduated to market economy status; and, press for binding commitments from steelmaking nations to eliminate excess capacity and subsidies resulting from government market-distorting policies and practices.

U.S. INDUSTRIAL OUTPUT FALLS FOR SECOND MONTH IN A ROW
Industrial production decreased 0.6% in March for a second month in a row as mining production and durable goods manufacturers produce fewer “hard goods,” according to data from the Federal Reserve’s monthly industrial production and capacity utilization report.

For the first quarter as a whole, industrial production fell at an annual rate of 2.2%. A substantial portion of the overall decrease in March resulted from declines in the indexes for mining and utilities, which fell 2.9% and 1.2%, respectively. The sizable decrease in mining production continued the industry’s recent downward trajectory; the index has fallen in each of the past seven months, at an average pace of 1.6% per month. At 103.4% of its 2012 average, total industrial production in March was 2% below its year-earlier level.

Meanwhile, manufacturing output decreased 0.3% in March. The production of durables moved down 0.4%. The largest declines, about 1.5%, were registered both by motor vehicles and parts and by electrical equipment, appliances, and components. Several industries posted increases, with the largest, nearly 1%, for computer and electronic products. After increasing 0.9% in January and decreasing 0.5% in February, the output of nondurable manufacturing edged down in March, as gains in the production of petroleum and coal products and of chemicals nearly offset declines for most other industries. The output of other manufacturing (publishing and logging) fell almost 1%. For the first quarter, manufacturing output moved up at an annual rate of 0.6%, roughly reversing its small decrease in the fourth quarter of last year.

AEDC TO MAKE TRADE TRIP TO GERMANY, HUTCHINSON HEADED TO ENGLAND IN JULY
The Arkansas Economic Development Commission will be sending three top staff members to the international Hannover Messe trade show in Germany on April 25-29, where President Obama and German Chancellor Angela Merkel are expected to kick off the world’s largest industrial technology trade fair by highlighting the two countries long-held manufacturing sector ties, Talk Business & Politics learned Thursday (April 14).

Gov. Asa Hutchinson will follow up that European trip in early July when he will lead a state delegation to the Farnborough International Airshow in England, the fourth such trade mission in the governor’s short tenure. According to AEDC spokesman Scott Hardin, neither Hutchinson nor AEDC Director Mike Preston will make the trip to the industrial trade show in Germany. Hutchinson is currently actively involved in the ongoing biennial fiscal session at the state Capitol, which could last for several weeks.

Danny Games, AEDC’s executive vice president of global business, will be the top state official making the trip to Germany where AEDC will have an exhibit at the USA Investment Pavilion, Hardin said.

MAY 1 DEADLINE FOR $1.3 BILLION SUN PAPER ‘SUPERPROJECT’ LIKELY TO BE EXTENDED UNTIL SUMMER
An upcoming May 1 deadline to find a site location for a $1.3 billion superproject that China’s largest privately-held timber company hopes to build in south Arkansas is expected to be extended until later this summer, state economic development officials said Thursday.

During an eight-day trade mission to the Far East in the fall, Gov. Asa Hutchinson and Arkansas Economic Development Director Mike Preston signed a letter of intent with China-based Shandong Sun Paper Industry Joint Stock Co. to pursue the multibillion dollar pulp mill to be located in the state’s timberland region.

The original letter of intent had set a May 1, 2016 date to finalize a site for the project. “We are getting closer to a decision on the Sun Paper project but the May 1 deadline mentioned in the letter of intent will likely be extended,” AEDC spokesman Scott Hardin said in an email response.