6/16/10 12:18 AMSteelmakers Lobby for Infrastructure Projects, Less Regulation - WSJ.com

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Steelmakers Plead Case to RepresentativesChief Executives Lobby for Spending on Infrastructure Projects, Aim to Dodge More Stringent ClimateRegulations

By ROBERT GUY MATTHEWS

The chief executive officers of the biggest U.S. steelmakers warned Thursday that proposed limits oncarbon emissions and underspending on infrastructure and energy markets could derail the industry'snascent recovery.

At a meeting with Steel Caucus members of the U.S.House of Representatives, steel producers stepped uptheir lobbying efforts to ward off climate-control andenergy legislation they say would add hundreds ofmillions of dollars in costs and lead to job losses.

They also said the stimulus bill designed to spur moresteel-intensive projects such as road construction andbridge building hasn't been effective.

"Nonresidential construction has gotten worse," saidDan DiMicco, CEO of Nucor Corp. "It has been goingsouth in a hurry" since last year. He said the stimuluspackage only allocated $110 billion out of $787 billionfor infrastructure and out of that allocation, not enough

was spent on major projects to create a lasting effect.

John Surma, CEO of U.S. Steel Corp., said proposals to limit greenhouse-gas emissions would severelyhurt domestic producers by making the cost of American steel more expensive than cheaper, morepolluting steelmaking countries.

"China, India and Brazil have no intentions of reducing greenhouse-gas emissions," Mr. Surma said. Headded that legislators have to understand that there should be an emphasis on ensuring that laws don'tmake American-made steel uncompetitive.

The steel industry is one of the most prolific filers of antidumping and trade cases against foreigncompanies. In December, the domestic industry won its largest trade-filing case ever, when the U.S.International Trade Commission ruled that China dumped $2.8 billion of pipe and tube steel and

Associated Press

Steel producers warned of climate-control legislationand underspending on infrastructure. Above, a U.S.Steel plant in Braddock, Pa., in 2008.

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6/16/10 12:18 AMSteelmakers Lobby for Infrastructure Projects, Less Regulation - WSJ.com

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International Trade Commission ruled that China dumped $2.8 billion of pipe and tube steel andharmed U.S. manufacturers.

Domestic steelmakers have been slowly recovering from the recession that slowed the demand foreverything from car and construction materials to appliances. At the lowest point last year, steel millswere operating at just about 40% percent of capacity, too low to make a profit.

That operating rate has since climbed to about 67% as demand for steel has begun to rebound. Thesteelmakers also have begun rehiring workers who had been laid off during the recession.

"A year ago, 1,200 of our employees were laid off," said James L. Wainscott, chief executive of AK SteelCorp., but "as of Monday, we are down to 20" people laid off.

Job retention was a key theme for steelmakers, and a popular one among Steel Caucus members. Mosthave sizable steel mills within their districts and wanted to know what they could do to help thesteelmakers retain their competitive edge while keeping people working.

U.S. Rep. Charlie Wilson, a Democrat who represents Ohio's 6th Congressional District, said he wantedto make sure energy legislation wouldn't cause job losses. "All my Ohio district wants to do is go back towork."

Write to Robert Guy Matthews at robertguy.matthews@wsj.com