DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,502

KES ACQUISITION COMPANY D/B/A KENTUCKY ELECTRIC STEEL (KES)
A WHOLLY OWNED SUBSIDIARY OF SPECIALTY STEEL WORKS
INCORPORATED (SSWI)
ASHLAND, KENTUCKY

Negative Determination Regarding Eligibility
To Apply for Worker 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), (b)
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and
(e). For the Department of Labor to issue a certification for
workers under SeDEPARTMENT OF LABOR

Employment and Training Administration

TA-W-93,502

KES ACQUISITION COMPANY D/B/A KENTUCKY ELECTRIC STEEL (KES)
A WHOLLY OWNED SUBSIDIARY OF SPECIALTY STEEL WORKS
INCORPORATED (SSWI)
ASHLAND, KENTUCKY

Notice of Revised Determination
on Reconsideration

On April 9, 2018, the Department of Labor issued a
determination for the workers and former workers of KES Acquisition
Company d/b/a Kentucky Electric Steel (KES), a wholly owned
subsidiary of Specialty Steel Works Incorporated (SSWI), Ashland,
Kentucky (KES Acquisition Company). The Department’s Notice of was
published in the Federal Register on July 18, 2018 (83 FR 33953). A
reconsideration application was initiated on August 15, 2018. The
workers’ firm is engaged in activity related to the production of a
variety of steel products.
The request for reconsideration asserted that the workers of
KES Acquisition Company were trade-impacted.
Upon the review of new and existing information during the
Reconsideration, Department of Labor determines that the subject
workers meet the worker group certification criteria under Section
222(a) of the Trade Act, as amended.
Section 222(a)(1) has been met because a significant number
or proportion of the workers in KES Acquisition Company have become
totally or partially separated, or are threatened to become totally
or partially separated.
Section 222(a)(2)(B) has been met because the workers’ firm
has acquired from a foreign country the production of articles like
or directly competitive with those produced by the subject workers
which contributed importantly to worker group separations at KES
Acquisition Company.
Conclusion
After careful review of the additional facts obtained on
reconsideration, I determine that workers of KES Acquisition
Company d/b/a Kentucky Electric Steel (KES), a wholly owned
subsidiary of Specialty Steel Works Incorporated (SSWI), Ashland,
Kentucky, who were engaged in activities related to the production
of a variety of steel products, meet the worker group certification
criteria under Section 222(a) of the Act, 19 U.S.C. § 2272(a). In
accordance with Section 223 of the Act, 19 U.S.C. § 2273, I make
the following certification:

"All workers of KES Acquisition Company d/b/a Kentucky
Electric Steel (KES), a wholly owned subsidiary of Specialty
Steel Works Incorporated (SSWI), Ashland, Kentucky who became
totally or partially separated from employment on or after
January 26, 2017, through two years from the date of this
certification, and all workers in the group threatened with
total or partial separation from employment on date of
certification through two years from the date of
certification, are eligible to apply for adjustment assistance
under Chapter 2 of Title II of the Trade Act of 1974, as
amended.”

Signed in Washington, D.C., this 24th day of January, 2019.


/s/Jessica R. Webster
______________________________
JESSICA R. WEBSTER
Certifying Officer, Office of
Trade Adjustment Assistancection 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 the workers' firm
must have become totally or partially separated or be
threatened with total or partial separation.

(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) (I) imports of articles or services like or directly
competitive with articles or services produced or
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly
competitive with articles into which the
component part produced by the workers' firm was
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly
competitive with articles which are produced
directly using the services supplied by the
workers' firm have increased; OR
(III) imports of articles directly incorporating
component parts not produced in the U.S. that are
like or directly competitive with the article
into which the component part produced by the
workers' firm was directly incorporated have
increased; AND
(iii) the increase in imports 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.

(B) Shift in Production or Supply Path:
(i)(I) there has been a shift by the workers' firm to a
foreign country in the production of articles or
supply of services like or directly competitive with
those produced/supplied by the workers' firm; OR
(II) there has been an acquisition from a foreign
country by the workers' firm of articles/services that
are like or directly competitive with those
produced/supplied by the workers' firm; and
(ii) the shift described in clause (i)(I) or the
acquisition of articles or services described in
clause (i)(II) contributed importantly to such
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." 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 or
service 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.

Workers of a firm may also be considered eligible if they
are publicly identified by name by the International Trade
Commission as a member of a domestic industry in an
investigation resulting in a category of determination that is
listed in Section 222(e) of the Act, 19 U.S.C. § 2272(e).
The group eligibility requirements for workers of a firm
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), can be
satisfied if the following criteria are met:
(1) the workers' firm is publicly identified by name by
the International Trade Commission as a member of a
domestic industry in an investigation resulting in--
(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
(B) an affirmative determination of market disruption
or threat thereof under section 421(b)(1); or
(C) an affirmative final determination of material
injury or threat thereof under section
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of
1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));

(2) the petition is filed during the 1-year period
beginning on the date on which--
(A) a summary of the report submitted to the
President by the International Trade Commission
under section 202(f)(1) with respect to the
affirmative determination described in paragraph
(1)(A) is published in the Federal Register under
section 202(f)(3); or
(B) notice of an affirmative determination described
in subparagraph (1) is published in the Federal
Register; and

(3) the workers have become totally or partially
separated from the workers' firm within--
(A) the 1-year period described in paragraph (2); or
(B) notwithstanding section 223(b), the 1-year
period preceding the 1-year period described in
paragraph (2).

The investigation was initiated in response to a petition
filed on January 31, 2018 by the United Steelworkers (USW) on
behalf of workers of KES Acquisition Company d/b/a Kentucky
Electric Steel (KES), a wholly owned subsidiary of Specialty
Steel Works Incorporated (SSWI), Ashland, Kentucky (herein
referred to as "Kentucky Electric Steel"). The workers' firm is
engaged in activities related to the production of seamless cold
drawn pipe & tube, cold finished steel bars, & flats & various
SBQ & MBQ products. The subject worker group is engaged in
activities related to the production of flat steel bars in
carbon and alloy grades.
The petitioners alleged that, "Based on this information
the USW believes that foreign trade is a factor in the closing
of the facility in Ashland, KY."
During the course of the investigation, information was
collected from the workers' firm and the petitioner.
With respect to Section 222(a)(2)(A)(i) of the Act, the
investigation revealed that Kentucky Electric Steel has not
experienced a decline in the sales or production of flat steel
bars in carbon and alloy grades during the relevant period
under investigation.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Kentucky Electric Steel did not
shift the production of flat steel bars in carbon and alloy
grades to a foreign country or acquire flat steel bars in
carbon and alloy grades from a foreign country.
With respect to Section 222(b)(3) of the Act, the
investigation revealed that Kentucky Electric Steel is a
Supplier 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); however, the component parts supplied did
not account for at least 20 percent of the production or sales
or contribute importantly to workers' separation or threat
thereof.
With respect to Section 222(b)(3) of the Act, the
investigation revealed that Kentucky Electric Steel does act as
a 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), but it did not
contributed importantly to worker separations or threat of
separations.
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied either 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 of the facts obtained in the
investigation, 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 KES Acquisition
Company d/b/a Kentucky Electric Steel (KES), a wholly owned
subsidiary of Specialty Steel Works Incorporated (SSWI),
Ashland, Kentucky, who are engaged in activities related to the
production of flat steel bars in carbon and alloy grades, to
apply for adjustment assistance, in accordance with Section 223
of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 9th day of April 2018.

/s/Jacquelyn R. Mendelsohn
______________________________
JACQUELYN R. MENDELSOHN
Certifying Officer, Office of
Trade Adjustment Assistance