Steel group urges inclusion in stimulus plan

Locals hope plan will boost industry

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Rebuilding the diminished demand for American steel could involve, literally, rebuilding America, region and national steel experts say.

The battered steel industry is looking to President-elect Barack Obama's sweeping public works plan for some salvation.

Washington-based American Iron and Steel Institute has "met with some of (Obama's) key transition team players, held strategy sessions" and laid out for the president-elect the industry's policy priorities," institute spokeswoman Elizabeth Vago said Friday.

Hoping to help jump-start the economy, Obama wants to fund billions in infrastructure projects, including constructing roads, bridges and public buildings.

"That's going to obviously help our industry out," institute government relations manager David Ziemba said.

Union representatives of region steelworkers agreed Friday.

"It's something we need to do in this country," said Tom Hargrove, president of United Steelworkers Local 1010. "It's long overdue."

Hargrove's local is based in East Chicago, serving workers at ArcelorMittal.

In its note to Obama, the institute encourages the "speedy implementation" of a stimulus package "that supports and stimulates infrastructure projects," especially the country's roads and bridges.

That work, local union representatives say, would be a boon to region employment.

"If it gets passed, absolutely, it means more work for our guys," said Mike Millsap Jr., contract coordinator for USW Amalgamated Local 2003, based in Gary. "I think the question is, how long will it take to get passed?"

Few details have been released about Obama's plan, other than that it reportedly focuses mostly on wide-ranging infrastructure projects and could involve trillions of dollars.

Local unions, whose members rely upon steel demand for job security, seem to know as little as industry insiders.

Hargrove said he knows few details about the plan, "except that it's going to be big."

To help an industry grappling with its lowest production levels since the 1980s, it might have to be.

Production in the region is weathering a dramatic plummet, dropping to 269,000 tons the week of Dec. 20, a 17 percent dive from the previous week, institute figures show.

"Right now, with home sales down, no one's buying washing machines, refrigerators" and other items built with steel, Hargrove said.

The bleak economy has dampened steel demand, prompting layoffs and plant shuttering across the country.

With his focus on infrastructure, Obama "(has) got the right idea," Hargrove said. "We need to start making things again in this country."

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