DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-54,234

BASF CORPORATION
COATINGS DIVISION
MORGANTON, NORTH CAROLINA

Negative Determination Regarding Eligibility to Apply for
Worker Adjustment Assistance and
Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents
the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance. The group
eligibility requirements for directly-impacted (primary) workers
under Section 222(a) the Trade Act of 1974, as amended, can be
satisfied in either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in
such workers' facility, or an appropriate subdivision
of the facility, have become totally or partially
separated, or are threatened to become totally or
partially separated;
B. the sales or production, or both, of such facility or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly
competitive with articles produced by such facility or
subdivision have contributed importantly to such
workers' separation or threat of separation and to the
decline in sales or production of such facility or
subdivision; or



II. Section (a)(2)(B) both of the following must be satisfied:

A. a significant number or proportion of the workers in
such workers' facility, or an appropriate subdivision
of the facility, have become totally or partially
separated, or are threatened to become totally or
partially separated;
B. there has been a shift in production by such workers'
facility or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such facility or subdivision; and

C. One of the following must be satisfied:
1. the country to which the workers' facility has
shifted production of the articles is a party to a
free trade agreement with the United States;
2. the country to which the workers' facility has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act,
African Growth and Opportunity Act, or the Caribbean
Basin Economic Recovery Act; or
3. there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced
by such facility or subdivision.

The investigation was initiated on February 11, 2004 in
response to a petition filed on behalf of workers at BASF
Corporation, Coatings Division, Morganton, North Carolina. The
workers at the subject facility produced powder coating products
and liquid coating products. The workers are separately
identifiable by product line.
The investigation revealed that criteria (a)(2)(A)(I.C) and
(a)(2)(B)(II.B) were not met.
The investigation revealed that during 2002 and 2003 the
subject firm did not import powder coating products and liquid
coating products.
Furthermore, the investigation revealed that the subject
facility did not shift production of powder coating products and
liquid coating products abroad during the relevant period.
The Department of Labor surveyed the entities to which the
subject firm submitted bids for powder coating products. These
surveys revealed the bids for powder coating products were
awarded to other domestic producers for manufacturing in the
United States.
The Department of Labor surveyed the subject facility's
major declining customers regarding their purchases of liquid
coating products. The surveys revealed no imports of liquid
coating products by the major declining customers during the
period under investigation.
In addition, in accordance with Section 246 the Trade Act
of 1974 (26 USC 2813), as amended, the Department of Labor
herein presents the results of its investigation regarding
certification of eligibility to apply for alternative trade
adjustment assistance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be
certified eligible to apply for trade adjustment assistance
(TAA). Since the workers are denied eligibility to apply for
TAA, the workers cannot be certified eligible for ATAA.



Conclusion
After careful review of facts obtained in the
investigation, I determine that all workers of BASF Corporation,
Coatings Division, Morganton, North Carolina, are denied
eligibility to apply for adjustment assistance under Section 223
of the Trade Act of 1974, and are also denied eligibility to
apply for alternative trade adjustment assistance under Section
246 of the Trade Act of 1974 as amended.
Signed in Washington, D.C., this 12th day of April 2004

/s/ Linda G. Poole

______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance