Schumer Secures Commitment from Dept. of Defense that Military Steel Will Be 100% Made in the USA - Feds Agree to Reverse Rule that Allowed U.S. Military to Buy Steel from Around the Globe, Hurting Steel Producers Like Western NY's Buffalo Armory

Press Release

Today, U.S. Senator Charles E. Schumer secured a Department of Defense (DoD) commitment to restore the requirement that all U.S. military steel be 100% made in the U.S., boosting jobs at New York steel manufacturers like Buffalo Armory, a subsidiary of Klein Steel in Rochester. DoD published a new draft amendment to the Defense Federal Acquisition Regulations that alters a 2009 definition of "produced" as it pertains to steel armor plate to no longer include "quenching and tampering" of steel. For 35 years, until 2009, the U.S. military received all of its steel from domestic producers, helping to create jobs at Klein Steel and other producers across the state. In the midst of the Iraq and Afghanistan wars when demand was soaring, the U.S. dropped the requirement, which forced Buffalo Armory to compete with companies from around the world, including China, some of which do not play by global trading rules. Now that the Iraq war has ended and ample U.S. manufacturers exist to meet military's demand, Schumer is announcing that the Defense Department will now move to reinstate the old requirement, which will likely support new work at Buffalo Armory, which currently employs over 50 people in western New York.

"Our military steel will once again be proudly stamped "Made in the U.S.A.' and more of it can now come from Buffalo, which is great news for American workers," said Schumer. "Upstate New York has the best manufacturers and steelworkers in the world who are ready to answer the call of duty. I am pleased that the Department of Defense has answered my call to reinstate the requirement that all steel be made right here at home, which will create jobs in western New York and throughout the country. American workers have always met the military's need, so we will once again call on them instead of workers halfway around the world in China or other countries that don't play by the rules and undercut U.S. jobs at every turn."

At Schumer's urging, DoD published a new draft rule in the Federal Register to amend the definition of "produced" as it relates to the Specialty Metals Amendment, and removed "quenching and tampering" of steel armor place from the definition. Schumer noted that such a rule change is rare. This amendment means that U.S. military steel cannot be melted in countries with unlawful trade regulations, including China, and cannot simply receive steel finishing processes in the U.S. so as to comply with the rule that military steel be "produced" domestically. This new rule is a direct result of the Fiscal Year 2011 (FY12) National Defense Authorization Act (NDAA), in which Schumer joined his Congressional colleagues to call on DoD to review the current definition of "produce" to ensure that U.S. steelworkers were not losing jobs to companies overseas. There will be a 60-day comment period on the proposed rule that Schumer has backed, which requires that steel armor plate has to be melted in the U.S. or a qualifying country under the Specialty Metals Amendment.

In January of 2012, Schumer joined Klein Steel CEO Major General John Batiste (Ret.) as he announced his now successful push to require that DoD only buy steel from U.S. manufacturers. Klein Steel currently employs roughly 50 workers at its subsidiary in western New York, Buffalo Armory. Klein receives its melted raw steel from Nucor, a firm with facilities in Auburn NY, and then tempers and produces armor steel plates with a proprietary process that involves cutting and finishing the armor steel plate, called "Star Armor." This steel plate can then fit into military vehicles, such as the Humvee or be used to armor military installations and other military equipment. Star Armor is thinner and lighter than current steel armor, saving fuel since armored vehicles do not need to be as heavy, while still meeting performance targets. Moreover Star Armor is flexible and easier to weld, which makes it an improvement over other types of armor steel plate products.

Buffalo Armory is positioning Star Armor to become widely used throughout the U.S. military, and Schumer has sought to ensure that foreign steel melted abroad does not undercut the ability of Klein Steel and other U.S. producers' ability to compete and grow. Before 2009, DoD was required by law to purchase military steel that was 100% made in the U.S. Due to an increase in demand for steel in light of the wars in Iraq and Afghanistan, the Defense Department dropped the requirement, inviting competition from China and other global competitors who do not abide by the same rules as U.S. manufacturers like Klein. Chinese companies are notorious for undercutting U.S. prices on a range of goods by manipulating and devaluing their currency.

Founded in 1971, Klein Steel Service Inc. is the region's premier steel service center with six locations throughout New York. With over 3,200 line items of stock size carbon, stainless steel, and specialty metals, the company also offers a full range of value added processing and a fully integrated distribution network that extends the Klein Steel reach throughout the country. Klein Steel is acknowledged as an innovator and industry leader, having been named to the "Rochester Top 100" multiple times along with honors as one of New York's Best Companies to Work For in 2010.

BREAK IN TRANSCRIPT

Source