Two of West Virginia's largest private employers, Weirton Steel and Wheeling-Pittsburgh Steel, are locked in a battle for survival.  These companies, like so many other American steel producers, are fighting against a wave of illegal, below-cost, imported steel that has the potential to permanently cripple an industry that is vital to this country's economic base and national security.

The force of this wave can be seen in some disturbing figures.  According to U.S.  Department of Commerce data, in 1998, the U.S. imported more steel tonnage than ever before.  In fact, last year's import levels were 83 percent higher than the annual import average for the previous eight years.  Across the country, at the height of the import crisis, more than 10,000 steelworkers were forced off the job.  At least six steel companies have filed for bankruptcy.  Much of this damage can be linked directly to illegally dumped steel imports.

To help Weirton, Wheeling-Pitt, and other steel mills, I created a $1 billion loan guarantee program specifically designed to provide some short-term relief to the American steel industry.  My initiative that will help domestic steel producers by providing access to an infusion of capital to keep their furnaces burning and keep their employees on the job. 

Of the federal government's authority to guarantee up to $1 billion in loans to steel companies, $100 million of those funds is available at a federal guarantee rate of 95 percent of the principal and another $100 million is available at a federal guarantee rate of 90 percent of the principal.  The remainder of the funding is available at the original 85 percent guarantee rate.  No company could receive more than $50 million at the 90 or at the 95 percent guarantee levels.  Previously, the program only allowed for an 85 percent guarantee rate on all loans.  By increasing the percentage of the federal loan guarantee, these changes seek to make private lending to steel companies more attractive.

Repayment does not have to be completed until 2015.

My legislation establishes a three-member oversight Board, consisting of the Chairman of the Federal Reserve, who heads the loan guarantee board, the Secretary of Commerce, and the Chairman of the Securities and Exchange Commission.

The loan guarantees will not solve the steel crisis, however.  There must be a long-term, permanent solution to this crisis to prevent waves of illegal steel imports from drowning the U.S. steel industry.

For 50 years, I have fought for American workers, for the men and women who earn their livings by honest, hard work, and who are playing by the rules as they seek to achieve the American dream.  The U.S. steel industry has made the sacrifices and investments necessary to increase efficiency and compete effectively against foreign makers.  Our companies are willing and able to play by the rules.  As a nation, we must protect the viability of our steel industry.  To do so, we must insist that foreign competitors are held to that same set of rules.

You can learn more about the legislative history of the Emergency Steel Loan Guarantee Act.  In addition, the U.S. Department of Commerce has created an Internet site complete with the rules and regulations of the program, public comments, hearing testimony, and several other pieces of information that you might find useful.