DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-56,907

ENERGY CONVERSION SYSTEMS LLC
a/k/a/ MORGANITE, INC.
CARBON DIVISION
DUNN, NORTH CAROLINA

Negative Determinations 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' firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly
competitive with articles produced by such firm or
subdivision have contributed importantly to such
workers' separation or threat of separation and to the
decline in sales or production of such firm 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' firm, or an appropriate subdivision of
the firm, 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'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and

C. One of the following must be satisfied:
1. the country to which the workers' firm 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' firm 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 firm or subdivision.

The investigation was initiated on April 7, 2005, in
response to a petition filed by the company on behalf of workers
of Energy Conversion Systems LLC a/k/a/ Morganite, Inc., Carbon
Division, Dunn, North Carolina. The workers produce brushes for
electric motors.
The investigation revealed that criteria I.C. and II.B. are
not met.
The subject firm has gradually shifted production of
brushes from the Dunn facility to China. The brushes are used in
the production of electric motors abroad and are not imported
back to the United States.
The Department of Labor conducted a survey of the major
customers of the subject facility regarding their purchases of
brushes for electric motors in 2003, 2004 and January through
April 2004/2005. The survey revealed no increase in imports
during the relevant period.
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, I determine that all workers of
Energy Conversion Systems LLC a/k/a/ Morganite, Inc., Carbon
Division, Dunn, 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.
Signed in Washington, D.C., this 25th day of May 2005.

/s/ Richard Church
______________________________
RICHARD CHURCH
Certifying Officer, Division of
Trade Adjustment Assistance