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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

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