RMI thankful for tariffs on Russian imports

U.S. titanium makers have pushed for the tariffs for 11 years.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WEATHERSFIELD -- RMI Titanium says its products stand a better chance in the marketplace after the Bush administration agreed to place tariffs on Russian-made titanium.
"It levels the playing field," said Richard Leone, a spokesman for RTI International Metals, the parent company of the Weathersfield Township titanium maker.
The Russian exporter, Verkhnaya Salda Metallurgical Production Organization, has doubled its share of the U.S. market to 20 percent since 2002.
RMI has complained that VSMPO has received an unfair advantage because it has been exempt from a 15 percent duty that's normally charged for importing into this country. Meanwhile, titanium sponge that's imported into this country by RMI and other domestic titanium makers carries a 15 percent duty.
The sponge is a raw material used to produce titanium and must be imported from countries such as Japan and Kazakhstan because it is unavailable in this country.
Proclamation
A presidential proclamation signed this week ends the discrepancy in tariffs, which made it harder for U.S. producers to price their products competitively.
Since 1993, VSMPO has qualified for a duty exemption under a U.S. program that provides preferential treatment for struggling industries in developing countries. RTI said the U.S. titanium makers have protested this exemption from the start because VSMPO is larger than all domestic producers combined.
In a letter to government officials in June, Ohio Sens. George Voinovich and Mike DeWine argued that the Russian titanium industry has become a world-class competitor and shouldn't receive duty-free status.
Ending the preferential treatment will help the United States maintain a strong industrial base for the defense industry, they said. The country has three titanium producers.
Titanium, a strong but lightweight metal, is used in the frames of airplanes and for components in aerospace engines.
"Titanium is a critical material for our defense industries," Voinovich said.
Appreciative
Timothy Rupert, president and chief executive of RTI, said he appreciates the support the titanium industry received from legislators.
He said the Bush Administration received many letters from members of Congress and Ohio state legislators. Eleven Congressmen from Ohio supported RTI's efforts, including Tim Ryan of Niles, D-17th, and Ted Strickland of Lisbon, D-6th.
Rupert also noted that the House Armed Services Committee and House Manufacturing Caucus, which both include Ryan, supported the enactment of tariffs on Russian titanium.
Locally, RMI has been operating its titanium plant without its 340 hourly workers since October when the union workers were locked out in a labor contract dispute, which hasn't been resolved.
shilling@vindy.com