Uss Gary works

[Guest]

After WWII the US government through the Marshall Plan rebuilt many foreign steel plants in Germany and Japan to modern standards, but totally ignored investing in modernizing American steel plants. The US government ignored the needs of the domestic industry, an industry which was the backbone of the war effort - just disgraceful.

Having worked at the Bethlehem Steel's Lackawanna plant in the late 1960's I can testify to that plant still using the out dated equipment that it opened with in 1903, the open hearths. No BoF's, no continuous casters.

Complete failure of federal policy to support the steel industry in the Great Lakes region was so evident. The states were of no help either.

At least this time the federals have mandated that Nippon Steel invest billions of dollars in the USS Pittsburg area plants, and that the US maintain control of the plants, with a Japanese stake. Very wise indeed.

Disgraceful is being kind. Coming from a steel industry family and related industries it was very sad watching the decline

[john mcgraw]

After WWII the US government through the Marshall Plan rebuilt many foreign steel plants in Germany and Japan to modern standards, but totally ignored investing in modernizing American steel plants. The US government ignored the needs of the domestic industry, an industry which was the backbone of the war effort - just disgraceful.

Having worked at the Bethlehem Steel's Lackawanna plant in the late 1960's I can testify to that plant still using the out dated equipment that it opened with in 1903, the open hearths. No BoF's, no continuous casters.

Complete failure of federal policy to support the steel industry in the Great Lakes region was so evident. The states were of no help either.

At least this time the federals have mandated that Nippon Steel invest billions of dollars in the USS Pittsburg area plants, and that the US maintain control of the plants, with a Japanese stake. Very wise indeed.

[Guest]

I have always felt that the failure of the steel corporations to modernize in the decades following the end of World War II played a big part in the collapse of the industry in the late 1970s and into the early 1980s. As the nations directly affected by the war rebuilt their steel industries, these new facilities were more efficient than those in use by the domestic companies and in combination with the new facilities being built in developing nations this placed domestic steelmakers into the position of facing high quality products from foreign sources. Having grown up in the 1970s, there seemed to be an attitude among the steelmakers and automakers that no one would seriously considering buying foreign products and that their domestic markets were relatively safe from significant erosion from foreign competitors. The steel strikes of 1959 allowed the intrusion of foreign steels into the domestic market and this, I believe, began the downward spiral of US steelmaking. Having lived in the many parts of the country while growing up, the assumption, during the 1970s, that any car or steel product being manufactured outside of the United States was "junk" or "inferior" to US made items seemed to be a somewhat localized phenomenon prevalent in the Midwest, and in particular Michigan, during that time. What we see now in the steel industry is the direct result of underestimating your competition and the failure to invest in your core manufacturing operations to remain competitive. Those two factors cannot be solved by tariffs.

Very well put!

[Guest]

But what's left in the US is modern. The productivity and cost competitiveness of US EAF's is very good.

But if your competitors don't need to meet the same worker and environmental standards as you do then that's a problem. Along with the fact the world's largest steel manufacturer wlll take losses just expand their employment and market share is a problem too.

Lots of countries protect their steel industry.

[Guest]

I have always felt that the failure of the steel corporations to modernize in the decades following the end of World War II played a big part in the collapse of the industry in the late 1970s and into the early 1980s. As the nations directly affected by the war rebuilt their steel industries, these new facilities were more efficient than those in use by the domestic companies and in combination with the new facilities being built in developing nations this placed domestic steelmakers into the position of facing high quality products from foreign sources. Having grown up in the 1970s, there seemed to be an attitude among the steelmakers and automakers that no one would seriously considering buying foreign products and that their domestic markets were relatively safe from significant erosion from foreign competitors. The steel strikes of 1959 allowed the intrusion of foreign steels into the domestic market and this, I believe, began the downward spiral of US steelmaking. Having lived in the many parts of the country while growing up, the assumption, during the 1970s, that any car or steel product being manufactured outside of the United States was "junk" or "inferior" to US made items seemed to be a somewhat localized phenomenon prevalent in the Midwest, and in particular Michigan, during that time. What we see now in the steel industry is the direct result of underestimating your competition and the failure to invest in your core manufacturing operations to remain competitive. Those two factors cannot be solved by tariffs.

[Guest]

Very, very good news here regarding the USS Gary works re-opening.

This will mean hundreds of good paying jobs restored to that area, including in the shipping industry.

Yes, Virginia tariffs do work, and protecting heavy American industry, which is concentrated in the Great Lakes basin, is extremely important.

For decades, federal administrations of both parties have actively ignored the needs of heavy industry, allowing our steel and iron and coke plants to be devastated by predatory foreign competition. Federal policy actively encouraged the out sourcing of heavy industry overseas, devastating local communities, and destroying jobs and local tax bases. Whether its Gary or South Chicago or Lackawanna the story is the same.

Look for example at the Buffalo area - the massive Bethlehem Steel plant at Lackawanna closed and mostly demolished, causing the loss of 20,000 jobs; the massive Republic Steel plant at South Buffalo, closed and demolished causing the loss of 5,000 jobs; the massive Donner-Hanna Coke plant in South Buffalo closed and demolished with the loss of 2,000 jobs, are just examples of the losses in the GL basin.

US Steel is only restarting their tin mill at Gary which is expected to create 225 jobs.

Those older mills were replaced by non-union Mini-mills in the Southern US. Over 80% of raw steel is now made in the South and less than 20% is made at integrated steel mills.

The fact of the matter is that by the mid-1970s most of the US Steel industry was outdated with too many mills that couldn't be retrofitted into ultra-modern steel mills due to their small footprint and layout. That's why US Steel around 1976-79 was planning a new integrated steel mill (Speer Works) next to their ore-unloading dock in Conneaut, Ohio at that time. By 1980, US Steel thought better of building a new mill and instead invested in Marathon Oil - which in hindsight was a good idea. That's because Marathon Oil could be used as collateral to invest in mills like Gary, Mon Valley, etc with updated or new continuous casters, while other companies found it nearly impossible to get money from banks for investments at that time due to how poor the steel market was at that time.

When the OPEC embargo started in October 1973, it precipitated a severe recession between the years 1973-75 and caused the end of the post-war economic boom. The dominoes started to fall at that time and accelerated with the stagflation of the mid- to late-1970s and early 1980s. I was in high school in the early 1980s and recall the heartbreak of all those mills closing and the impact it had on single industry communities in the Mon Valley, Pittsburgh, South Chicago, Buffalo and other cities and towns.

[Guest]

Not sure tariffs are the only reason. Letting the Japanese buy USS was the smartest move vs having Cliffs buy them. When the Japanese invest in American companies, they usually are true to their word and are good stewards of their investments.

They are pouring a ton of money in their mills - also investing billions in their Pittsburgh PA facility. A facility that was threatened with closure by US Steel management prior to Nippon Steel's purchase. And because of Pittsburgh's survival, the long haul ore shipments to Conneaut, Ohio will continue.

[Jared]

Very, very good news here regarding the USS Gary works re-opening.

This will mean hundreds of good paying jobs restored to that area, including in the shipping industry.

Yes, Virginia tariffs do work, and protecting heavy American industry, which is concentrated in the Great Lakes basin, is extremely important.

For decades, federal administrations of both parties have actively ignored the needs of heavy industry, allowing our steel and iron and coke plants to be devastated by predatory foreign competition. Federal policy actively encouraged the out sourcing of heavy industry overseas, devastating local communities, and destroying jobs and local tax bases. Whether its Gary or South Chicago or Lackawanna the story is the same.

Look for example at the Buffalo area - the massive Bethlehem Steel plant at Lackawanna closed and mostly demolished, causing the loss of 20,000 jobs; the massive Republic Steel plant at South Buffalo, closed and demolished causing the loss of 5,000 jobs; the massive Donner-Hanna Coke plant in South Buffalo closed and demolished with the loss of 2,000 jobs, are just examples of the losses in the GL basin.

How are you supposed to keep the mills open when we have depleted most of the iron ranges that used to fuel them? We can get pure ore from Brazil for a 1/3 of the price of muddy taconite.

[john mcgraw]

Very, very good news here regarding the USS Gary works re-opening.

This will mean hundreds of good paying jobs restored to that area, including in the shipping industry.

Yes, Virginia tariffs do work, and protecting heavy American industry, which is concentrated in the Great Lakes basin, is extremely important.

For decades, federal administrations of both parties have actively ignored the needs of heavy industry, allowing our steel and iron and coke plants to be devastated by predatory foreign competition. Federal policy actively encouraged the out sourcing of heavy industry overseas, devastating local communities, and destroying jobs and local tax bases. Whether its Gary or South Chicago or Lackawanna the story is the same.

Look for example at the Buffalo area - the massive Bethlehem Steel plant at Lackawanna closed and mostly demolished, causing the loss of 20,000 jobs; the massive Republic Steel plant at South Buffalo, closed and demolished causing the loss of 5,000 jobs; the massive Donner-Hanna Coke plant in South Buffalo closed and demolished with the loss of 2,000 jobs, are just examples of the losses in the GL basin.

[Denny]

I was wondering that same Question you asked Bob and thanks to Guest, he help answer our question then. Yesterday, I had thought about it and as Guest had said, sort of figured that it had something to do with the Speer being sidelined and also getting new engine upgrades put into her this year. I wonder, will Interlake then haul ore to Gary all year or just until the Speer is back in action again? Also, will ASC haul any ore to Gary this year or will it be mostly from Interlake with a few loads from GLF as well? Thanks for any info on that. Another question, will Interlake also deliver any further ore loads to Conneaut this year? The James R. Barker made a very rare call there earlier this season so I wonder, sometimes the Speer would make a few calls to Conneaut each season. Could Interlake fill that void or will ASC take care of those loads? Thanks for any answers and info on my questions.

[Guest]

The Edgar B. Speer usually hauls iron ore there for Great Lakes Fleet. It is on the sidelines being repowered, so Great Lakes Fleet has contracted with Interlake to haul some of those cargoes.

When they contract it out does Great Lakes Fleet pay Interlake what they received or just make arrangements and let the shipper pay Interlake? Always curious how that works.

[Guest]

The Edgar B. Speer usually hauls iron ore there for Great Lakes Fleet. It is on the sidelines being repowered, so Great Lakes Fleet has contracted with Interlake to haul some of those cargoes.

[Mn bob]

It appears the majority of ore being delivered to uss Gary works this season is on the interlake ships. Usually it’s the uss/Great Lakes fleet or asc that delivers ore there. Did Interlake sign a contract with uss to haul there ore this season? Seems like interlake ships always delivered Burns harbor and Indiana harbor.