DEMOCRATS CAME OUT AGAINST HER.
>> MARIA: LIKE CHUM
>> MARIA: LIKE CHUCK SCHUMER.
THE TRUMP ADMINISTRATION THEY'RE
CELEBRATING ONE FACTORY OPENING.
SOME COMPANIES ARE SEEKING
RELIEF FROM THE PRESIDENT'S
TRADE HOSTILITY, REQUESTING
EXEMPTIONS ON TARIFFS THEY SAY
ARE HURTING BUSINESS.
A STEEL PIPE MANUFACTURER SAYS
THE TARIFFS PLACED ON STEEL ARE
ADVERSELY AFFECTING HIS PLANS TO
EXPAND HIS BUSINESS.
JOINING US RIGHT NOW IS JOEL
JOHNSON.
THANKS SO MUCH FOR BEING HERE.
>> GOOD MORNING FROM TEXAS.
>> MARIA: EXPLAIN THE SITUATION.
IF YOU DON'T GET AN EXEMPTION
FROM THE TARIFFS, YOU CAN'T
EXPAND YOUR BUSINESS.
WHAT WILL BE THE IMPACT?
>> THE IMPACT WILL BE THAT WE'LL
BE SUFFERING FROM PAYING THE
TARIFF WHICH WILL BE SOMEWHERE
BETWEEN $25 MILLION AND
$35 MILLION.
WE HAVE A FACILITY OUTSIDE OF
HOUSTON IN BAYTOWN, TEXAS, WHERE
WE MAKE PIPE.
WE'VE BEEN MAKING PIPE THERE
SINCE 2014.
BUT WE ALSO IMPORT PIPE FROM OUR
PARENT IN TURKEY AND WE FINISH
ALL THE PIPE IN BAYTOWN.
SO THAT WAS OUR ORIGINAL PLAN.
IF THESE TARIFFS GO THROUGH AND
WE DON'T GET THIS EXEMPTION,
WE'LL HAVE TO DECIDE DO WE
CONTINUE TO IMPORT.
BUT WHAT WE TRIED TO DO IS SPIN
THIS INTO A UNIQUE OFFER, A DEAL
TO PRESIDENT TRUMP AND SECRETARY
ROSS, IS TO GIVE US A SHORT-TERM
EXEMPTION, ALLOW US TIME TO
BUILD A NEW FACTORY ALONGSIDE
OUR EXISTING ONE AND BECOME 100%
AMERICAN STEEL AND PIPE AND STOP
IMPORTS.
WE'RE DOVETAILING WHAT WE
BELIEVE THE ADMINISTRATION
WANTS, WHICH IS NEW INVESTMENT,
TAILOR OUR EXEMPTION REQUEST TO
BE.
>> MARIA: WHAT ABOUT YOUR
EXPORTS?
OVERSEAS FOR YOU?
>> WELL, OUR FACILITY IN
BAYTOWN, WE DO EXPORT TO CANADA,
SOME SMALL AMOUNTS, BUT MOST OF
OUR PRODUCT IS FOR ALL OF THE
NEVER SHOWED UP, WOULD YOU HAVE
BUSINESS -- BUSINESS WOULD HAVE
CONTINUED WITH THE PARENT BEING
IN TURKEY AND YOUR FACILITY
OPERATING OUT OF TEXAS?
WAS THERE ANY PLANS TO CHANGE
THAT BEFORE THE TARIFFS CAME
AROUND?
>> WHEN WE BUILT THE FACILITY,
WE MADE THE ORIGINAL INVESTMENT
IN 2014, THE PLAN WAS ALWAYS TO
CURRENTLY MAKE THE SMALLER
DIAMETERS AND LARGER DIAMETERS
AND FINISH IT ALL IN BAYTOWN.
SO WHEN THIS 232 CAME ABOUT, WE
UNDERSTOOD WHAT THE
ADMINISTRATION WANTED, WHICH IS
MORE JOBS AND MORE INVESTMENT.
SO WE SAID ALL WE NEED IS A
SHORT-TERM EXEMPTION.
WE'RE NOT ASKING FOR CARTE
BLANCHE YEARS OF TARIFF-FREE
IMPORTATION.
ONCE WE BUILD THE FACTORY AN GET
IT LINED OUT AND TUNED UP AND
HIRE THE 170 NEW EMPLOYEES AND
TRAIN THEM, WE'LL STOP IMPORTS
AND WE'LL BE 100% USA CONTENT.
I THINK THAT'S WHAT THE
ADMINISTRATION IS TRYING TO DO
IS INCREASE EMPLOYMENT.
ANOTHER THING THAT WILL HAPPEN
BECAUSE OF THIS IS WE WILL BUY
MORE HOT ROLLED COIL STEEL FROM
OUR U.S. SUPPLIERS.
WE CURRENTLY BUY FROM NEW CORPS,
SDI, BIG RIVER.
ONCE WE GET THE NEW FACTORY
GOING WE'RE GOING TO BUY MORE
OF THIS 232 PROCESS IS.
ALL WE NEED IS A BIT OF TIME TO
BUILD ANOTHER FACTORY ALONGSIDE
OUR EXISTING ONE.
JOEL, THANKS VERY MUCH FOR --
>> YEAH, 100%.