Orrice oF THE GovERNOR
February 7, 2018, Fee 802) 5602517
Marmiew 6, Bevo
‘The Honorable Steven T. Mnuchin
Secretary of the Treasury
Chair, Committe on Foreign Investmentin the United States
Department ofthe Treasury
1500 Pennsyvani Ave, NW.
Washington, 0. 20220
ear Secretary Mnuchin
am writing to share serious concerns about the proposed joint venture between Tingshan Group, 2
Chinese-owned frm thats now the largest stainless steel producerin the world, and Aegheny
“Technologies, Inc. (AT). Because of ATI's well-known history of cooperation with the US. defence
Industry, and because the proposed joint venture f expected to lead tothe erosion of eritcl US.
stainless steel manufacturing capability, the joint venture threatens to impair the national security of
‘the United States. urge the Committee on Foreign Investment inthe United States, which you Char, to
Init a review ofthe joint venture,
‘There appears to be the potential for considerable national secur concerns that could aie from
allowing Tsngshan Group to have such a close partnership with AT, which boasts of producing "a wide
‘ange of mitarygrade titanium, specialty steels, and other materials and components for defense
contractors and other customers." lam additionaly concerned about the joint venture’s announced
intent to target the US. market with Tsingshan's foreign produced stainless-steel slabs. this proposed
partnerships consummated it wll undermine the competitive marketplace by impairing the financial
health of US. manufacturers of stainless stel, raise the potential for reduced output, shutter US,
‘operations, and curtallRED investment. Through this proposed joint venture, a Chinese frm could
negatively impact the abiity of domestic manufacturers to serve 352 reliable source of tanlss ste! for
‘defense industry applications erica to our national security. There wil undoubtedly be a negative
Impact on critical infastructure projects and other commercial uses key tothe county's economic
secur.
‘As you may know, Kentucky is home toa manufacturing plant owned by North American Stlnlss (NAS),
‘which today produces about 35% of al North American-produced stainless steel NAS has invested more
‘than $2.6 bilion in Kentucky sine 1990 and, even at the depths ofthe economic crash in 2008, has
never lid off workers. tt employs more than 1,400 people atts facility in Caroll County, Kentucky, and
Isone ofthe best corporate citizens inthe Commonwealth as measured by community engagement
‘activites (donations to scholarships, high school programs, et.)
seniynsioni.on CL‘The Honorable Steven T. Mnchin
Page 2
February 7, 2018,
| support the Presidents recently announced National Securit Strategy, “he President's strategy
recognizes that “a healthy defense industrial bate fa critical element of U.S. power.” 1also support the
‘Administration’ efforts on aluminum, which has national security and marketplace implications
‘comparable to those of stainless steel, to “crack down on what it Sees as China's efforts to flood global
markets with cheap metals,” according toa Bloomberg report on November 28,2017. Ie is my far that
the proposed join venture Is a poy by astrategc competitor ofthe United States to flood our market
with foreign stainless steel, threaten the viability of US-based stainless stel manufacturers, eliminate
‘or degrade key competitive options for US. defense industry and othe customers, and weaken the US.
manufacturing and industrial base generally.
| ask the Committee on Foreign Investment in the United States to thoroughly review the proposed joint
‘venture between ATI and Tsingshan Group, 2s itrecenty did with respect the proposed acquisition of
US. aluminum producer, Alesis Corp, to ensure that our national security i not impaired by the
transaction,
In ny capacity asa fiduciary of Kentucky's economy, its my duty to share our concerns about the
impact this proposed transaction would have on more than 1400 workers and thei families in the
Bluegrass State a wel a onthe entire nation’s crcl stainleststee| manufacturing capacity. Thank
YoU for reading this letter and for your thoughtful attention to this matte.
Sincerely,
Matthew 6. Bevin
Governor
ce
US. Department of Commerce Headquarters
oc.
1401 Constitution Ave NW
Washington, D.C. 20230
Secretary Elaine L. chao
US Department of Transportation
1200 New lersey Ave, SE
Washington, 0.¢. 20590‘Tre Honorable Steven T.Mauchin
Page 3
February 7, 2018,
Attorney General Jeff Seisions
U5. Deparment of ustie
950 Pennsyvania Avenue, NW
Washington, 0.¢. 20530-0001
Senator Mitch MeConnell
317 Russell Senate Office Building
Wishington,0.C. 20510
‘Senator Rand Paul
167 Russell Senate Office Building
‘washington, 0.¢, 20510
Congressman Thomas Missle
2453 Rayburn HOB
‘Washington, 0.¢. 20515
‘Genera ohn . Kelly
Chief of Stat
The White House
1600 Pennsyivania Avenve NW
Washington, D.C. 20500
General H.R. MeMaster
National Security Advisor
‘The White House
1600 Pennsyhania Avente NW
‘Washington, .c. 20500
‘The Honorable Michael R Pence
Viee-Presdent of the United States
The White House
1600 Pennsyivanis Avenve
Weshington, D.C. 20500
‘The Honorable Nick Ayres
Chief of taf to the Vice President
‘The White House
1600 Pennsyivania Avenue
‘Washington, 0.¢. 20500‘The Honorable Steven T, Mauchin
Page a
February 7, 2018,
Mr. Peter Navaro, Director
National Trade Council
‘The White House
1600 Pennsylvania Avenue
‘Washington, 0.C. 20500