DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,677

HITACHI ZOSEN CATALYST USA, LLC
A SUBSIDIARY OF HITACHI ZOSEN GROUP COMPANIES
INCLUDING ON-SITE LEASED WORKERS FROM SURGE STAFFING
SCOTTSBORO, ALABAMA

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the Trade
Preferences Extension Act of 2015, Public Law No. 114-27, section
405(a)(1)(A), the investigation into this petition was reopened for a
reconsideration investigation to apply the requirements for worker
group eligibility under chapter 2 of title II of the Trade Act of
1974, as amended by the TAARA 2015, to the facts of this petition
(statutory reconsideration).
The initial investigation, initiated on November 28, 2014,
resulted in a negative determination, issued on December 10, 2014
that was based on the Department’s findings of no increased imports
of mono-nitrogen oxide removal catalysts modules, or like or directly
competitive articles; no shift of production of mono-nitrogen oxide
removal catalysts modules by the subject firm to a foreign country;
and that the petitioning workers did not meet the criteria of a
secondary worker certification. The determination was applicable to
workers and former workers of Hitachi Zosen Catalyst USA, LLC, a
subsidiary of Hitachi Zosen Group Companies, including on-site leased
workers from Surge Staffing, Scottsboro, Alabama (Hitachi Zosen
Catalyst USA). Hitachi Zosen Catalyst USA produced mono-nitrogen
oxide removal catalysts modules for use in coal-fired power plants.
The petition, filed by a company official, states that “Over
95% of our production . . . has been exported to China . . . the
Chinese government strongly urges the power companies to purchase
from a domestic supplier in China . . . We are now unable to
compete in the China market due to this issue as well as import
tariffs which makes our product no longer cost effective for the
Chinese customer.”
Based on information reviewed during the reconsideration
investigation, the Department determines that the requirements for
certification have not been met.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that neither Hitachi Zosen Catalyst USA nor
its major declining customer increased imports of mono-nitrogen
oxide removal catalysts modules, or like or directly competitive
articles, during the twelve month period prior to the petition date
(November 26, 2014).
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Hitachi Zosen Catalyst USA did not
shift the production of mono-nitrogen oxide removal catalysts
modules, or like or directly competitive articles, to a foreign
country or acquire the production of mono-nitrogen oxide removal
catalysts modules, or like or directly competitive articles, from a
foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Hitachi Zosen Catalyst USA is not a
Supplier or Downstream Producer to a firm that employed a group of
workers who received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied because Criterion (1)
has not been met since the workers’ firm has not been publicly
identified by name by the International Trade Commission as a
member of a domestic industry in an investigation resulting in an
affirmative finding of serious injury, market disruption, or
material injury, or threat thereof.
Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Hitachi Zosen
Catalyst USA, LLC, a subsidiary of Hitachi Zosen Group Companies,
including on-site leased workers from Surge Staffing, Scottsboro,
Alabama, to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.”

Signed in Washington, D. C. this 19th day of March, 2016

/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,677

HITACHI ZOSEN CATALYST USA, LLC
A SUBSIDIARY OF HITACHI ZOSEN GROUP COMPANIES
INCLUDING ON-SITE LEASED WORKERS FROM SURGE STAFFING
SCOTTSBORO, ALABAMA


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 ("Act"), 19 U.S.C. § 2273, the Department of Labor
herein presents the results of an investigation regarding
certification of eligibility to apply for worker adjustment
assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For
the Department of Labor to issue a certification for workers
under Section 222(a) of the Act, 19 U.S.C. § 2272(a), the
following three criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that 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;
(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm
must have decreased absolutely, AND
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.
(B) Shift in Production Path:
(i) 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
(ii)(I) 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;
(II)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
(III)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.

For the Department to issue a secondary worker
certification under Section 222(b) of the Act, 19 U.S.C. §
2272(b), to workers of a Supplier or a Downstream Producer, the
following criteria must be met:
(1) a significant number or proportion of the workers in
the workers' firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially
separated;
(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who
received a certification of eligibility under Section
222(a) of the Act, 19 U.S.C. § 2272(a), and such
supply or production is related to the article that
was the basis for such certification; and
(3) either
(A) the workers' firm is a supplier and the component
parts it supplied to the firm described in paragraph
(2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition
filed on November 28, 2014 by a company official on behalf of
workers of Hitachi Zosen Catalyst USA, LLC, a subsidiary of
Hitachi Zosen Group Companies, including on-site leased
workers from Surge Staffing, Scottsboro, Alabama ("Hitachi
Zosen" or "subject firm"). The workers' firm is engaged in
activities related to the production of NOx (mono-nitrogen
oxide) removal catalysts modules (used in coal-fired power
plants). Workers are not separately identifiable by product
line. The petition states, "Over 95% of our production in the
past 5 years has been exported to China. There are now companies
in China manufacturing a similar product . . . We are now unable
to compete in the China market . . . which makes our product no
longer cost effective for the Chinese customer."
During the course of the investigation, information was
collected from the workers' firm and publically available
sources.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Hitachi Zosen did not shift
production of NOx removal catalysts modules, or like or
directly competitive articles, to a foreign country.
With respect to Section 222(a)(2)(A)(ii), the
investigation revealed no increased imports of NOx removal
catalysts modules, or like or directly competitive articles,
by the subject firm during the relevant period. Because the
vast majority of the NOx removal catalysts modules produced by
the subject firm were exported to foreign markets, the
Department did not conduct a customer survey regarding their
imports into the United States.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Hitachi Zosen is not a Supplier
to, and does not act as a Downstream Producer for, a firm (or
subdivision, whichever is applicable) that employed a group of
workers who received a certification of eligibility under
Section 222(a) of the Act, 19 U.S.C. § 2272(a).
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(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 the facts obtained in the
investigation, I determine that all workers of Hitachi Zosen
Catalyst USA, LLC, a subsidiary of Hitachi Zosen Group
Companies, including on-site leased workers from Surge
Staffing, Scottsboro, Alabama, are denied eligibility to apply
for adjustment assistance under Section 223 of the Trade Act of
1974, as amended, and are also denied eligibility to apply for
alternative trade adjustment assistance under Section 246 of the
Trade Act of 1974, amended.

Signed in Washington, D. C. this 10th day of December, 2014

/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance