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X:\2005\421 Circular Welded Pipe UNITED STATES INTERNATIONAL TRADE COMMISSION In the Matter of: ) ) CIRCULAR WELDED NON-ALLOY ) Investigation No.: STEEL PIPE FROM CHINA ) TA-421-6 Pages: 1 through 409 Place: Washington, D.C. Date: September 16, 2005 HERITAGE REPORTING CORPORATION Official Reporters 1220 L Street, N.W., Suite 600 Washington, D.C. 20005 (202) 628-4888 1 THE UNITED STATES INTERNATIONAL TRADE COMMISSION In the Matter of: ) ) CIRCULAR WELDED NON-ALLOY ) Investigation No.: STEEL PIPE FROM CHINA ) TA-421-6 Friday, September 16, 2005 Room 101 U.S. International Trade Commission 500 E Street, SW Washington, D.C. The hearing commenced, pursuant to notice, at 9:30 a.m., before the Commissioners of the United States International Trade Commission, the Honorable STEPHEN KOPLAN, Chairman, presiding. APPEARANCES: On behalf of the International Trade Commission: Commissioners: STEPHEN KOPLAN, COMMISSIONER (presiding) DEANNA TANNER OKUN, VICE CHAIRMAN JENNIFER A. HILLMAN, VICE CHAIRMAN CHARLOTTE R. LANE, COMMISSIONER DANIEL R. PEARSON, COMMISSIONER SHARA L. ARANOFF, COMMISSIONER Heritage Reporting Corporation (202) 628-4888 2 APPEARANCES (continued): Staff: MARILYN R. ABBOTT, SECRETARY TO THE COMMISSION WILLIAM R. BISHOP, HEARINGS AND MEETINGS COORDINATOR SHARON BELLAMY, HEARINGS AND MEETINGS ASSISTANT FRED RUGGLES, INVESTIGATOR ALAN TREAT, INDUSTRY ANALYST CATHERINE DeFILIPPO, ECONOMIST MARY PEDERSEN, ACCOUNTANT/AUDITOR WILLIAM GEARHART, ATTORNEY DIANE MAZUR, SUPERVISORY INVESTIGATOR Congressional Appearances: THE HONORABLE ARLEN SPECTER, UNITED STATES SENATOR, PENNSYLVANIA THE HONORABLE BLANCHE L. LINCOLN, UNITED STATES SENATOR, ARKANSAS THE HONORABLE PHIL ENGLISH, U.S. CONGRESSMAN, 3RD DISTRICT, PENNSYLVANIA THE HONORABLE JUANITA MILLENDER-McDONALD, U.S. CONGRESSWOMAN, 37TH DISTRICT, CALIFORNIA THE HONORABLE MARION BERRY, U.S. CONGRESSMAN, 1ST DISTRICT, ARKANSAS THE HONORABLE MELISSA A. HART, U.S. CONGRESSWOMAN, 4TH DISTRICT, PENNSYLVANIA THE HONORABLE TIM RYAN, U.S. CONGRESSMAN, 17TH DISTRICT, OHIO State Government Appearances: THE HONORABLE MICHAEL C. GRUITZA, STATE REPRESENTATIVE, 7TH DISTRICT, PENNSYLVANIA THE HONORABLE MARVIN CHILDERS, STATE REPRESENTATIVE, 77TH DISTRICT, ARKANSAS THE HONORABLE BRIAN BEADER, CHAIRMAN, MERCER COUNTY COMMISSIONER, PENNSYLVANIA THE HONORABLE STEVE McGUIRE, COUNTY JUDGE, MISSISSIPPI COUNTY, ARKANSAS Heritage Reporting Corporation (202) 628-4888 3 APPEARANCES (continued): In Support of Relief: On behalf of Allied Tube and Conduit Corp., IPSCO Tubulars, Inc.; Maruichi American Corp., Maverick Tube Corp., Sharon Tube Company, Western Tube and Conduit Corp., Wheatland Tube Company, The United Steelworkers: WILL BOGGS, Vice President, Fire Protection and Fence, Allied Tube and Conduit Corp. SCOTT BARNES, Vice President, Commercial, IPSCO Tubulars, Inc. PAUL VIVIAN, Marketing Manager, Energy Products, Maverick Tube Corp. NEAL LUX, Marketing Manager, Line and Standard Pipe, Maverick Tube Corp. WILLIAM PERRINE, President and CEO, Sharon Tube Corp. GORO TERAO, President and CEO, Western Tube and Conduit Corp. DON FINN, Vice President, Sales, Western Tube and Conduit Corp. PETER DOONER, President, Wheatland Tube Company MARK MAGNO, Vice President, Sales and Marketing, Wheatland Tube Company TOM CONWAY, International Vice President, United Steelworkers DONALD STRITTMATTER, President, Ideal Supply TIM MILLER, Vice President, Supply Chain Management, Master Halco JOHN THOMPSON, Director, Planning and Procurement, Merchant Metals Division of MMI HARRY PAGE, President and CEO, Wheeling Pittsburgh Steel Corp. PAT TATOM, President, WCI Steel JOHN NOLAN, Vice President, Sales and Marketing, Steel Dynamics, Inc. SAM COMMELLA, Vice President and General Manager, Nucor Steel Arkansas ROBERT BLECKER, Economist, Schagrin Associates; and Professor of Economics, American University Of Counsel: ROGER B. SCHAGRIN Schagrin Associates, Washington, D.C. Heritage Reporting Corporation (202) 628-4888 4 APPEARANCES (continued): In Opposition to Relief: On behalf of CCCMC, Certain Chinese Producers: THOMAS J. PRUSA, Economist, Rutgers University Of Counsel: WILLIAM H. BARRINGER, Esquire DANIEL L. PORTER, Esquire MATTHEW P. McCULLOUGH, Esquire Wilkie Farr & Gallagher, LLP Washington, D.C. On behalf of MAN Ferrostaal, Inc.: JERRY COIBION, Sales Manager, MAN Ferrostaal, Inc. Of Counsel: FREDERICK P. WAITE, Esquire KIMBERLY R. YOUNG, Esquire Vorys, Sater, Seymour & Pease, LLP Washington, D.C. Heritage Reporting Corporation (202) 628-4888 5 I N D E X PAGE TESTIMONY OF THE HONORABLE ARLEN SPECTER, 9 UNITED STATES SENATOR, PENNSYLVANIA TESTIMONY OF THE HONORABLE BLANCHE L. LINCOLN, 13 UNITED STATES SENATOR, ARKANSAS TESTIMONY OF THE HONORABLE PHIL ENGLISH, 19 U.S. CONGRESSMAN, 3RD DISTRICT, PENNSYLVANIA TESTIMONY OF THE HONORABLE MARION BERRY, 24 U.S. CONGRESSMAN, 1ST DISTRICT, ARKANSAS TESTIMONY OF THE HONORABLE MARVIN CHILDERS, 28 STATE REPRESENTATIVE, 77TH DISTRICT, ARKANSAS TESTIMONY OF THE HONORABLE MELISSA A. HART, 31 U.S. CONGRESSWOMAN, 4TH DISTRICT, PENNSYLVANIA TESTIMONY OF THE HONORABLE BRIAN BEADER, 36 CHAIRMAN, MERCER COUNTY COMMISSIONER, PENNSYLVANIA TESTIMONY OF THE HONORABLE MICHAEL C. GRUITZA, 40 STATE REPRESENTATIVE, 7TH DISTRICT, PENNSYLVANIA TESTIMONY OF THE HONORABLE STEVE McGUIRE, 45 COUNTY JUDGE, MISSISSIPPI COUNTY, ARKANSAS OPENING REMARKS OF ROBERT B. SCHAGRIN 49 (Schagrin Associates) OPENING REMARKS OF WILLIAM H. BARRINGER 53 (Wilkie Farr & Gallagher) TESTIMONY OF THE HONORABLE TIM RYAN, 58 U.S. CONGRESSMAN, 17TH DISTRICT, OHIO TESTIMONY OF PETER DOONER, President, 64 Wheatland Tube Company TESTIMONY OF WILL BOGGS, Vice President, Fire 69 Protection and Fence, Allied Tube and Conduit Corp. TESTIMONY OF WILLIAM PERRINE, President and CEO, 74 Sharon Tube Corp. Heritage Reporting Corporation (202) 628-4888 6 I N D E X TESTIMONY OF GORO TERAO, President and CEO, 79 Western Tube and Conduit Corp. TESTIMONY OF PAUL VIVIAN, Marketing Manager, 81 Energy Products, Maverick Tube Corp. TESTIMONY OF SCOTT BARNES, Vice President, 86 Commercial, IPSCO Tubulars, Inc. TESTIMONY OF TOM CONWAY, International Vice President, 88 United Steelworkers TESTIMONY OF DONALD STRITTMATTER, President, 96 Ideal Supply TESTIMONY OF TIM MILLER, Vice President, Supply Chain 92 Management, Master Halco TESTIMONY OF JOHN THOMPSON, Director, Planning and 94 Procurement, Merchant Metals Division of MMI TESTIMONY OF HARRY PAGE, President and CEO, Wheeling 98 Pittsburgh Steel Corp. TESTIMONY OF PAT TATOM, President, WCI Steel 101 TESTIMONY OF JOHN NOLAN, Vice President, Sales and 102 Marketing, Steel Dynamics, Inc. TESTIMONY OF SAM COMMELLA, Vice President and 106 General Manager, Nucor Steel Arkansas TESTIMONY OF ROBERT BLECKER, Economist, Schagrin 109 Associates; and Professor of Economics, American University Heritage Reporting Corporation (202) 628-4888 7 I N D E X TESTIMONY OF MARK MAGNO, Vice President, Sales and 146 Marketing, Wheatland Tube Company TESTIMONY OF NEAL LUX, Marketing Manager, Line and 152 Standard Pipe, Maverick Tube Corp. TESTIMONY OF DON FINN, Vice President, Sales, 152 Western Tube and Conduit Corp. TESTIMONY OF THOMAS J. PRUSA, Economist, Rutgers 270 University TESTIMONY OF JERRY COIBION, Sales Manager, 300 MAN Ferrostaal, Inc. REBUTTAL/CLOSING REMARKS OF ROGER B. SCHAGRIN 401 (Schagrin Associates) REBUTTAL/CLOSING REMARKS OF DANIEL L. PORTER 404 (Wilkie Farr & Gallagher, LLP) Heritage Reporting Corporation (202) 628-4888 8 1 P R O C E E D I N G S 2 (9:30 a.m.) 3 CHAIRMAN KOPLAN: Good morning. On behalf 4 of the United States International Trade Commission, I 5 welcome you to this hearing in Investigation No. 6 TA-421-6, Circular Welded Non-Alloy Steel Pipe from 7 China. The Commission instituted this investigation 8 under Section 421(b) of the Trade Act of 1974 to 9 determine whether circular welded, non-alloy pipe from 10 China was being imported into the United States in 11 such increased quantities or under such conditions as 12 to cause, or threaten to cause, market disruption to 13 the domestic producers of like or directly competitive 14 products. 15 Schedules setting forth the presentations at 16 this hearing and testimony of witnesses are available 17 at the secretary's desk. Please give all written 18 testimony to the secretary. Do not place testimony 19 directly on the public distribution table. 20 I understand the parties are aware of the 21 time allocations. Any questions regarding the time 22 allocations should be directed to the secretary. As 23 all written material will be entered in full into the 24 record, it need not be read to us at this time. 25 All witnesses must be sworn in by the Heritage Reporting Corporation (202) 628-4888 9 1 secretary before presenting testimony. 2 Finally, if you will be submitting documents 3 that contain information you wish treated as business- 4 confidential, your request should comply with 5 Commission Rule 201.6. 6 Madam Secretary, are there any preliminary 7 matters? 8 MS. ABBOTT: No, Mr. Chairman. 9 CHAIRMAN KOPLAN: Let us proceed with our 10 first congressional witness. 11 MS. ABBOTT: Our first speaker will be the 12 Honorable Arlen Specter, United States Senator, 13 Pennsylvania. 14 CHAIRMAN KOPLAN: Welcome, Mr. Chairman. I 15 think your microphone is not on. That's it. 16 SENATOR SPECTER: Thank you very much, Mr. 17 Chairman. It's a pleasure to appear again before the 18 distinguished International Trade Commission. I want 19 to thank you for conducting this hearing with a view 20 to affording very much needed relief in the standard 21 pipe line, and on the personal level, thank you for
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