[Federal Register Volume 75, Number 66 (Wednesday, April 7, 2010)]
[Notices]
[Pages 17692-17693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7883]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[Docket 51-2008]


Foreign-Trade Zone 82; Application for Subzone Authority; 
ThyssenKrupp Steel and Stainless USA, LLC; Invitation for Public 
Comment on Preliminary Recommendation

    The FTZ Board is inviting public comment on its staff's preliminary 
recommendation pertaining to the application by the City of Mobile, 
grantee of FTZ 82, to establish a subzone at the ThyssenKrupp Steel and 
Stainless USA, LLC (ThyssenKrupp) facility in Calvert, Alabama. The 
staff's preliminary recommendation is for approval of the application 
with a restriction limiting the FTZ benefits to ThyssenKrupp's 
production for export. The bases for this finding are as follows:
    Analysis of the application record indicates that full approval of 
the ThyssenKrupp application could have a negative impact on domestic 
raw material suppliers as well as other domestic steel producers. 
Regarding raw material suppliers, while there may not be sufficient 
quantities available from domestic sources for all raw materials 
proposed in the application, significant U.S. production remains of 
several key materials. Unrestricted use of FTZ procedures in the steel 
industry could harm certain domestic raw material producers if cost 
savings are provided for imported materials used in ThyssenKrupp's 
production for the U.S. market.
    As to impact on other domestic steel producers, while ordinarily 
all companies in an industry would have an equal opportunity to use FTZ 
procedures for their operations, the structure of many existing U.S. 
steel plants could make those companies' use of FTZ procedures overly 
complicated and costly. Unlike the ThyssenKrupp plant, many existing 
facilities are ``mini-mills'' and have less integration at a single 
site. Product may move between several facilities during the 
manufacturing process. This structure would require FTZ applications, 
CBP activations, and bonds to be done separately for each facility, 
whereas ThyssenKrupp will only face those burdens (and costs) once due 
to the nature of its Alabama facility.
    In addition, ThyssenKrupp will be sourcing the ``slab'' for its 
carbon steel operations from Brazil, and will be shipping some 
stainless steel production to Mexico for certain cold-rolling 
operations. Other domestic producers conduct such operations in

[[Page 17693]]

the United States, creating higher levels of U.S. activity and 
employment. As a result, in combination with the other factors cited 
above, unrestricted FTZ authority for ThyssenKrupp could provide cost 
savings that would not be equally available to other domestic producers 
that have higher overall U.S. value added.
    At the same time, the ThyssenKrupp facility in Alabama will be 
competing with other ThyssenKrupp plants abroad for production destined 
for markets elsewhere in North and South America and beyond. FTZ 
savings for the Alabama facility's export production could enhance its 
competitiveness in the world market.
    Public comment on the preliminary recommendation and the bases for 
the finding is invited through May 14, 2010. Rebuttal comments may be 
submitted during the subsequent 15-day period, until June 1, 2010. 
Submissions (original and one electronic copy) shall be addressed to 
the Board's Executive Secretary at: Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 2111, 1401 Constitution Ave., NW., 
Washington, DC 20230.
    For further information, contact Elizabeth Whiteman at 
[email protected] or (202) 482-0473.

    Dated: March 30, 2010.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2010-7883 Filed 4-6-10; 8:45 am]
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