DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-60,365

KHS USA, INC.
WAUKESHA DIVISION
A WHOLLY OWNED SUBSIDAIRY KHS AG
WAUKESHA, WISCONSIN

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' 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 November 6, 2006 in
response to a petition filed by a State agency representative on
behalf of workers of KHS USA, Inc., Waukesha Division, a wholly
owned subsidiary of KHS AG., Waukesha, Wisconsin. The workers
produce bottle packaging equipment.
This investigation revealed that criteria (a)(2)(A)(I.A)
and (a)(2)(A) (I.B.), and (a)(2)(B)(II.A) and (a)(2)(B) (II.B.)
have not been met.
Employment at the subject facility increased in both 2005
compared with 2004 and in January through October, 2006 compared
with the same period one year earlier.
Sales and production at the subject firm also increased in
the above two sets of time periods.
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, they cannot be certified eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of KHS USA, Inc.,
Waukesha Division, a wholly owned subsidiary of KHS AG.,
Waukesha, Wisconsin are denied eligibility to apply for adjust-
ment 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 21st day of November 2006

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