US Commerce Dept launches investigation into steel component imports that impact AK Steel

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U.S. Secretary of Commerce Wilbur Ross announced Monday the initiation of a department-wide investigation into whether electrical steel components imported into the United States pose a national security threat.

The investigation, which was launched under Section 232 of the Trade Expansion Act of 1962, follows several inquiries and requests from multiple members of Congress as well as industry stakeholders, including advocates for AK Steel facilities in Butler County, Pa., and Zanesville, Ohio.

Electrical steel is necessary for power distribution transformers for all types of energy – solar, nuclear, wind, goal, natural gas – across the country.

“An assured domestic supply of these products enables the United States to respond to large power disruptions affecting civilian populations, critical infrastructure, and U.S. defense industrial production capabilities,” a Department of Commerce release stated.

AK Steel Holding Corporation was officially acquired in March 2020 by Cleveland-Cliffs, which warned lawmakers earlier this year that stronger protections against imported grain-oriented electrical steel components into the United States would be needed to keep the Butler and Zanesville mills open.

AK Steel’s Butler facility employs more than 1,400 hourly and salaried workers.

“As the last American producer of electrical steel products that are key components of the electrical grid, Cleveland-Cliffs owned AK Steel is a bedrock of our national security and the Butler economy,” U.S. Rep. Mike Kelly (R-PA) said on behalf of AK Steel. “Thank you to President Trump, Secretary Ross, and U.S. Trade Representative Robert Lighthizer for hearing our community’s concerns and taking action to end the unfair trade practices that threaten AK Steel’s ability to continue production of electrical steel. Thank you also to Cleveland-Cliffs and the men and women of UAW 3303 for fighting alongside me to save these jobs.”

Kelly has worked with the Cleveland-Cliffs subsidiary and the Trump administration since 2017 to address the threat of unfair trade practices in the electrical steel market.

“The investigation initiated by Commerce is a step toward avoiding that outcome, which would make America reliant on foreign nations for key components of its electrical grid,” according to a statement released by Kelly’s office.

U.S. Sen. Bob Casey (D-PA), who has also long advocated for AK Steel and workers around the region, noted that the move, though positive, is a late advancement.

“This is a positive but long overdue step which must now be carried through to ensure the United States does not lose its last remaining electrical steel manufacturer. For two years, I have been calling on this Administration to take action on electrical steel cores and laminations. I’m glad they’re finally paying attention to an issue on which several senators have repeatedly urged action,” Casey said.