All of what was US STEEL is now owned by an East Indian global corporation partnered with a Belgium global corporation----there is no AMERICAN in US STEEL.
ARCELOR MITTAL is the largest steel manufacturer with manufacturing in Foreign Economic Zones globally but many in China.
We feel very strongly the TRUMP/KASICH deal of $30 million in Federal taxpayer money to CLIFF'S NATURAL RESOURCES----owned by CLEVELAND FAMILY----of 'Grover Cleveland'? is simply a buy-out of Cleveland family to enfold that small steel corporation still American into these global foreign steel corporations. Remember, the goal of MOVING FORWARD is killing all corporations still American.
'ArcelorMittal S.A. (French pronunciation: [aʁsəlɔʁmiˈtal]) is a Luxembourg-based multinational steel manufacturing corporation headquartered in Boulevard d’Avranches, Luxembourg. It was formed in 2006 from the takeover and merger of Arcelor by Indian owned Mittal Steel'
So, the only steel manufacturing coming to US FOREIGN ECONOMIC ZONES is an East Indian global steel factory owner used to operating in third world FOREIGN ECONOMIC ZONES and will do the same in any US Foreign Economic Zone. Nothing UNION-FRIENDLY from Arcelor Mittal. Hmmm, sounds like the colonial America EAST INDIA CORPORATION taking the US to colonial status.
NO STRONG STEEL UNION WAGES FOR YOU SAY CLINTON/BUSH/OBAMA -----NOW TRUMP
Of course our US Steel labor union workers watched as their pensions were dissolved in the closing of these US mills in Baltimore and Pittsburgh. The same goes for CANADA----Trump likes to pretend he is protecting North American manufacturing while working for OLD WORLD MERCHANTS OF VENICE GLOBAL 1% as a freemason.
Acquired by Mittal Steel Company:
- International Steel Group (acquired 2004)
- Ispat International (acquired 2004)
- ArcelorMittal Kryvyi Rih - Ukraine (acquired 2005)
- Aceralia - Spain (merger 2001)
- Usinor - France (merger 2001)
- ARBED - Luxembourg (merger 2001)
- Dofasco - Canada (acquired 2006)
Is it legal for our elected officials to conspire against the interests of United States and its 99% of sovereign citizens? Of course not----it has always been illegal. This is why all these policies can be VOIDED----EASY PEASY. But we are getting some money in our pockets say US shareholders---we are LIVING FOR TODAY!
Play The Chinese Steel Cycle With ArcelorMittal
Apr.19.17 | About: ArcelorMittal (MT)
Small-cap, macro, value, momentum
The steel sector is plagued by price swings that are to a great extent produced by China, alternating acceleration and slowdown of demand.
While it's difficult to get the timing exactly right these cycles are tradable.
Longer-term, though, we continue to be firm on ArcelorMittal; the uptrend is still intact.
We were fairly bullish on steel stocks in general, and ArcelorMittal (NYSE:MT) in particular not so long ago, but something has changed. In fact, it isn't rocket science. As we argued in the previous article, the world steel market is mostly beholden to China.
That's where most of the demand comes from, but also the most supply (China produces roughly half of the world's steel). What's most significant is the imbalance between the two, as China still suffers from a huge overcapacity in the steel sector.
The situation in China is fairly volatile. At times, the government (or local authorities) push on the stimulus accelerator, especially in infrastructure and construction, and the Chinese steel surplus diminishes, prices zoom up, and world steel stocks rally.
You can see this in effect in the following figure:
It's also not hard to guess what happens next. When the stimulus abates, as the Chinese periodically worry about the amount of leverage they have in the economy, then the whole process cranks into reverse.
Apparently we're in such a period, as you can see from the graph. These cycles tend to be reinforced by inventory build-up and drawdowns. Huge inventories get built up in expectation of rising demand, but this can be overdone which requires a period of inventory drawdowns which tends to collapse prices (from Business Insider):
China's statistics bureau said that crude steel output grew by 1.8% to 72 million tonnes in March, more than a million tonnes more than the previous record high of 70.653 million tonnes set one year earlier. The record-breaking monthly output followed news that Chinese iron ore imports rose to 95.56 million tonnes in March, the second largest monthly total on record. Over the year, that left imports at 1.054 billion tonnes, the largest 12-month total on record. It was also 8.9% higher than the total imported in the 12 months to March 2016. The voracious appetite for iron ore has contributed to Chinese port inventories ballooning to 131.35 million tonnes, according to data provided by Shanghai Steelhome, just shy of the all-time record peak of 132.45 million tonnes seen in late March.
We took a week to discuss FAILED ENGINEERING in our US government development. These few decades everything done in US cities has been done on the cheap because it is not meant to last. Below we see the states spending this time IMPORTING CHINESE low-grade steel while EXPORTING high-quality US IRON ORE. No surprise that the construction in these states are with low-grade steel made on the cheap with no intentions of structures lasting.
'When measured by total volume, the nation’s largest states dominate steel and aluminum imports. Texas, California, Illinois, Michigan, Louisiana, Pennsylvania, Ohio, and New York all import more than $2 billion annually in steel and aluminum products, together accounting for 60 percent of the nation’s total'.
'Maryland’s imports are also disproportionately weighted towards aluminum and steel. As the Baltimore Sun reported, Maryland manufacturers of steel products are concerned that they will be put at a disadvantage, both due to higher input costs and by potentially limiting their access to important export markets should retaliatory measures be put in place'.
Here we see MARYLAND playing the cheapest material game crying about TRUMP TARIFFS as if Maryland is not driving all these FOREIGN ECONOMIC ZONES overseas.
The goal of MOVING FORWARD TRUMP TARIFFS is to reverse what has existed these few decades. Instead of making US raw iron ore cheap to EXPORT from US to build Foreign Economic Zones overseas------global banking 1% want now for US iron ore to cost more as US TAXPAYERS pay for US infrastructure building for US cities global corporate campuses and global factories. TARIFFS PROTECTING US IRON ORE.
Without coincidence----China is now getting ready to dump QUALITY IRON ORE on global market making this US iron ore more expensive -----costing more to build these US global corporate campuses and infrastructure. COST US 99% MORE------that is the goal.
Below we see the US iron ore mining is again controlled by these same ARCELOR MITTAL/CLEVELAND CLIFF with a billionaire coming after those mines on US NATIVE LANDS.
'Sep 9, 2013 @ 11:10 AM 15,632 The Little Black Book of Billionaire Secrets
Billionaire Battles Native Americans Over Iron Ore Mine'
Minnesota provides the great bulk of the iron ore mined in the US. Iron ore comes from seven open-pit mines, and two tailings reclamation operations, one in St. Louis County, and one in Itasca County. Three of the mines are operated by Cleveland Cliffs, two by U. S. Steel, and one each by Mesabi Nugget Delaware LLC and Arcelor Mittal S.A. The two reclamation projects are operated by Magnetation, Inc.
Michigan iron ore came from two active mines on the Marquette Iron Range: the Tilden Mine, and the Empire Mine, both operated by Cleveland-Cliffs Iron Company
Brookings Institute is of course that global neo-liberal think tank creating policies sending all US corporations overseas to build Foreign Economic Zones---so don't look to this far-right wing global banking 1% for REAL information.
How Trump’s steel and aluminum tariffs could affect state economies
Max Bouchet and Joseph Parilla Tuesday, March 6, 2018
The Trump administration’s trade policy took another abrupt turn last week with a spontaneous announcement to impose tariffs of 25 percent on steel and 10 percent on aluminum. The tariff declarations represent the latest in a line of aggressive trade policy changes, beginning with the removal of the United States from the Trans-Pacific Partnership and the renegotiation of NAFTA.
In a country as large and economically diverse as the United States, these macro policy shocks have local consequences and, once again, America’s local and state economic officials are asking how this latest trade policy shift will influence their own economies.
At least three scenarios are possible for U.S. regional and state economies. The argument in favor of the tariffs is that they are a counterweight against foreign producers of aluminum and steel that have flooded the U.S. market, putting American companies at a disadvantage. And for those metro areas and states that concentrate steel and aluminum production, this may represent a welcome relief.
However, the decision may put regions and states at an economic disadvantage, in at least two additional ways.
The first mechanism is via retaliatory tariffs from other countries on key American export industries. While it is unclear whether other countries will respond with their own retaliatory measures, Canada, China, and the European Union (EU) have signaled that they will respond by increasing tariffs on American-made products, potentially curbing exports. It is still too early to tell whether Trump’s move will result in a larger scale trade war, but changing the export competitiveness in particular products and industries will come to ground differently based on the unique export strengths of cities, regions, and states. The EU has already identified three iconic American products—bourbon, blue jeans, and motorcycles. Interestingly all implicate the states of key congressional leaders.
The second mechanism is through the ripple effects of higher prices for steel and aluminum imports, two critical inputs for industries as diverse as auto manufacturing, brewing, and construction. Using U.S. Census Bureau data on imports, we can examine how higher tariffs on aluminum and steel will implicate state economies that rely on those materials to support their key industries.
In 2017, imports of steel and aluminum goods covered within the scope of the U.S. Commerce Department’s Section 232 investigation totaled nearly $48 billion, or about 2 percent of total U.S. imports. Steel imports were a little over $29 billion while aluminum flows were about $19 billion.
When measured by total volume, the nation’s largest states dominate steel and aluminum imports. Texas, California, Illinois, Michigan, Louisiana, Pennsylvania, Ohio, and New York all import more than $2 billion annually in steel and aluminum products, together accounting for 60 percent of the nation’s total. Aside from Texas, California, and Louisiana, these states concentrate in the Northeast and Midwest’s Rust Belt. Given the large size of their economies, disruptions to trade in these states have significant potential to influence national economic growth and key industry sectors like automotive manufacturing, chemicals, and oil and gas production.
However, some states’ production relies more on steel and aluminum, measured by the share of those products that account for total imports. The figure below ranks states based on this metric.
The states that rely most on steel and aluminum imports as a share of their total import base cut an interesting economic geography. In Missouri, Louisiana, Connecticut, and Maryland, aluminum and steel imports account for at least 5 percent of total state imports, double the share of the nation’s 2 percent total.
Louisiana presents a particularly notable example. Oil and gas drillers and petrochemical producers in that state rely on imported steel and aluminum to support their operations. The Port of New Orleans imported 2.48 million tons of steel in 2017, accounting for 30 percent of its tonnage.
Maryland’s imports are also disproportionately weighted towards aluminum and steel. As the Baltimore Sun reported, Maryland manufacturers of steel products are concerned that they will be put at a disadvantage, both due to higher input costs and by potentially limiting their access to important export markets should retaliatory measures be put in place.
The impact of these tariffs on the U.S economy would be the strongest if Trump’s Monday tweet signals the inclusion of NAFTA. Canada and Mexico supply together 32 percent of U.S aluminum and steel imports. Canada alone accounts for one-fourth of U.S imports in these commodities.
We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must..
— Donald J. Trump (@realDonaldTrump) March 5, 2018
The inclusion of NAFTA in the tariffs would be particularly hard for state economies most dependent on Canada and Mexico. Michigan, for instance, relies on NAFTA for more than 70 percent of its steel and aluminum products. These imports support the state’s automotive and metalworking clusters, which together employ 230,000 workers.
But even if Canada and Mexico were spared, the tariffs would still apply to other strategic partners of individual U.S states. Illinois, the nation’s second largest importer of steel products, imports 41 percent of its steel from Brazil. Illinois also imports 29 percent of its aluminum from China, as aluminum is increasingly used as a substitute for steel in the U.S auto industry.
These proposed tariffs are unlikely to achieve their intended goals of pressuring trade partners suspected of creating market distortions from subsidies and dumping. Instead, they are increasing uncertainty over the coherence of America’s trade strategy and antagonizing its trade partners. At minimum, these tariffs will disrupt those firms, industries, regions, and states that rely on steel and aluminum imports, which at this point is still a relatively small segment of U.S. trade. However, if trade partners respond with their own retaliatory tariffs on a broader set of export industries, exposure to the latest Trump trade shock will spread.
So, here is China leaving that cheap grade iron ore EXPORT behind ------and now is switching to HIGH QUALITY EXPORTS of iron ore. We will now see China dumping high-grade iron ore causing global prices for iron ore to inflate-----just as US iron ore mining opens for business. There are almost no US owners of US iron ore mines-----getting that higher price. No US mining corporations are mining that iron ore------no US steel manufacturing corporations will be manufacturing that steel pipe----AND no US 99% labor will be laying that pipeline unless they want to work as global labor pool 99% works......$3 a day.
TRUMP is setting US and its 99% of citizens to be taken by OLD WORLD MERCHANTS OF VENICE GLOBAL 1% just as Clinton/Bush/Obama.
China is partnered with global banking 1% in fixing commodities markets------it allowed low-grade iron ore to be king these few decades just so US iron ore prices would be cheap in EXPORT to build Foreign Economic Zones in China.
The rise in price of high-grade iron ore by China will raise the price of low-grade iron ore in US mines owned by global foreign corporations ----not Americans.
Cleveland Cliff will enfold into the gorilla-in-room ArcelorMittal which owns almost all US iron ore mines. Nothing American happening in STEEL.
Iron Ore From Paradise Wins No Takers as China Upends Market
December 7, 2017, 10:02 PM EST Updated on December 8, 2017, 8:46 AM EST
- ‘There’s absolutely no market,’ Goan industry group reports
- China’s green push hurts demand as mills shun lower grade ores
It’s All Xi, All the Time in China as Party Influence Expands
China, U.S. Trade Tensions Intensify
Vale CEO Seeks to Help Balance Iron Market
A China-led flight to quality in the global iron ore market is punishing producers of the lower-grade material, with miners in India facing an increasing battle to find buyers for their cargoes as demand dwindles.
In Goa, exporters are struggling to sell even a quarter of what they shipped last year, according to Glenn Kalavampara, secretary at the Goa Mineral Ore Exporters’ Association. “There’s absolutely no market,” he said by phone from Panaji, capital of the western state that’s better known for its sparkling beach resorts. “The preference for higher-grade ore is a major concern.” he said.
While Indian exports account for just a fraction of the global seaborne market of about 1.4 billion tons that’s dominated by Vale SA, Rio Tinto Group and BHP Billiton Ltd., the plight of the low-grade shippers highlights the new dynamic. A concerted anti-pollution push in China this winter has supercharged the premium commanded by higher-grade material, which is more efficient. This week, Rio pointed to “clear evidence” of a structural change in the market, and earlier this year, BHP highlighted the industry’s “new reality”.
“There are hardly any exports,” R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries, said by phone from New Delhi. Sharma has been working in the sector for almost five decades, and at one time saw Indian exports top 100 million tons. “Even the Goans who are near the ports and have the least costs in the country are not able to sell,” he said.
China’s push to clean the air has exploded the price differential between high and low grades. On Friday, spot ore with 65 percent iron content from Brazil was at $87.20 a dry ton, while benchmark material of 62 percent was $69.35, and 58 percent was less than $40, according to Metal Bulletin Ltd.
Goa shipped half of India’s total exports of about 31 million tons in 2016-17, with a seasonal pattern to trade, as the retreat of the four-month monsoon around the end of September usually brings a revival in activity. That’s not happened this year, and miners from the state, which include Vedanta Ltd., have shipped just 680,000 tons of lower-content ores in the two months since mining resumed, down 76 percent from a year ago, according to Kalavampara.
That China’s overall demand remains robust -- even as poorer grades get shut out and some mills are forced to trim production to ease pollution over winter -- was in focus on Friday. Data from Beijing showed year-to-date purchases near 1 billion tons over 11 months as imports snapped back in November.
With the global market in flux, banks are factoring in lower shipments from India. Citigroup Inc. -- which is bullish on the outlook for prices in the first quarter -- expects exports will drop to 20 million tons next year from 28 million in 2017, according to its annual commodities outlook. After holding steady in 2019, the nation’s flows may slump to 10 million tons in 2020.
In India, exports of ore above 58 percent attract a duty of 30 percent, and miners have been seeking to have the levy scrapped to enable them to better compete with global players. “You know how aggressive Australia and Brazil are,” said Kalavampara. “We have requested the central government to kindly consider scrapping tax for up to 60 percent to start with.”
The difficulty in exporting lower-grade ore has led to a build-up of inventories at ports and mines. In October, Vedanta said it’s sitting on stockpiles of about 4 million tons, according to R. Kishore Kumar, chief executive officer of the iron ore division. The company plans to raise the iron content in its ore to 58-to-59 percent from 54-to-57 percent.
All of these iron ore mines mentioned here whether US or Canada are owned by the foreign ArcelorMittal. What we want to make clear is this-----our MI/MN/WI states have gone hyper-global banking 1% these few decades because they are being taken hyper-mining and global factory as in FoxConn. We talked under environmental public policy how MN was being taken by expanding TAR SAND CRUDE OIL from neighboring North Dakota. It is taken by fracking as well. Here we see the expansion of mining as global factories are being connected to fresh water from GREAT LAKES.
This is the FUTURE BREAD BASKET FRESH FOOD for CLIMATE CHANGE 21st century being destroyed in MOVING FORWARD these few decades by global corporations not even AMERICAN.
The 5% to the 1% pols and players are of course being tied to INSIDER TRADING and stock dividends from all these attacks on our US sovereignty----they are living for today----don't care what families face in 21st century.
Australia and South Africa have been made a mining wasteland-----coming now to US and Canada.
What does China get for flooding iron ore market with high-grade inflating prices for all iron ore as these US/Canada mining operations start? They get to bring their global mining corporations to do the mining----China brings their global steel manufacturing factories to make that steel pipe----AND they get to bring their global 99% of labor to US to work as they do overseas. What does America and 99% of US citizens get? They get made a TRIBUTE STATE having their natural resources raped by foreign corporations and our 99% US workers get to work as global labor pool overseas.
US Midwest poised for a copper and iron ore mining rebirth
Cecilia Jamasmie | Jun. 15, 2014,
Mining for iron ore and copper in the US Upper Midwest is expected to stage a major comeback, as demand for both commodities locally and from foreign markets such as China continues to rise.
There are at least six mines proposed or already started in the area comprised by Michigan, Minnesota and Wisconsin. According to AP, there are also four new operations in Minnesota that are using advanced technology to extract iron ore from waste rock mined long ago.
Canadian Highland Copper Co. (TSX-V:HI) is one of the companies planning a new mine — the Keweenaw project—close to Lake Superior. The Michigan's Upper Peninsula area, known as "copper country," was an economic pillar for the US about a century ago. Over 11 billion pounds of native copper was produced between 1854 and 1976 in a district that is barely 160km long and less than 7km wide.
But the copper boom fell onto hard times as production shifted elsewhere and prices declined. By 1995 the last copper mine in Michigan's Upper Peninsula had closed, leaving more than 1,000 people jobless.
Another project in the area is Lundin’s (TSX:LUN) Eagle Mine, a nickel and copper operation, previously owned by Rio Tinto (LON:RIO), which is scheduled to begin production this fall. According to the Lake Superior Community Partnership’s site, Eagle mine is expected to bring $4 billion into Marquette County over its eight-year lifespan, permanently employing 300 people and creating 1,200 indirect jobs.
As usual, some have raised concerns about possible environmental damages, especially to the nearby lakes.
Opponents claim there has never been a metallic sulfide mine that has not polluted water resources where water was present, and all the proposed mines are sulfide, says Stratus Consulting scientist Ann Maest, Ph.D., whose research found that 90% of the time “when you have a combination of sulfide mining and water resources there is a high likelihood you will have water quality problems.”
“These proposed mines would be among the largest in the US, and in some cases in the world. And they would be located in some of the country’s most treasured and unique freshwater ecosystems. The trouble is, sulfide mining and water just don’t mix,” writes Meleah Geertsma from the Natural Resources Defense Council.
Among the issues that concern locals, environmentalists and scientists, there is the question of whether the Michigan Department of Environmental Quality (MDEQ) properly assessed the potential for a mine collapse.
One of the ore bodies is located directly under the headwaters of the Salmon Trout River, says Geertsma, adding that a slump “would likely result in creation of acid mine drainage that would flow down the river and eventually to Lake Superior.”
But companies say they've learned from past mistakes and will leave a very small footprint this time around.
The Michigan Court of Appeals is currently hearing arguments in a case against the construction of Eagle mine, but has not made any decision yet.
'California officials have estimated that they’ll save at least $400 million by relying on low-wage Chinese labor. Former Governor Arnold Schwarzenegger visited the Chinese plant praising “The workers that are building our Bay Bridge.”'
When we hear US labor union members telling us all this MOVING FORWARD US CITIES DEEMED FOREIGN ECONOMIC ZONE infrastructure building are going to bring strong, good-paying union jobs-----we KNOW they are selling propaganda. Chinese labor was used to build US RAILROADS by the same ROBBER BARONS we have today. What is different from last industrial age and this coming ONE WORLD ONE ENERGY/TECH GRID age is this:
The last industrial age came at a time when AMERICA was still growing as a sovereign nation. This industrial age comes as AMERICA is being taken to colonial entity-----by the same OLD WORLD MERCHANTS OF VENICE GLOBAL 1%. There are no 99% WINNERS whether US or global 99%.
Do we not like global labor pool workers coming to rebuild US cities deemed Foreign Economic Zones? The global 99% immigrant labor is NOT THE PROBLEM. The problem is there will be no end to wanting this cheap enslaving labor. Our global labor pool last century had the opportunity to grow as US citizens after naturalization -------TODAY, there is NO LADDER for growth for our immigrant workers---our US FREEDOM, LIBERTY, JUSTICE, PURSUIT OF HAPPINESS being taken to DARK AGES ---
California turns to Chinese company, labor to build most of new Bay Bridge span
PRI's The World
October 19, 2011 · 4:00 PM CDT
Story from PRI's The World. Listen to the above audio for a full report.
For a civil engineer, there are few better views than a park bench by the water’s edge facing San Francisco.
“We can sit here in this little park in Emeryville and look at two of the most magnificent bridges in the world,” said William Ibbs, professor of construction management at the University of California, Berkeley. He’s talking about the Golden Gate Bridge and the new eastern span of the Bay Bridge. It’s under construction and set to open in 2013.
“I think it’s is going to be a memorable project, and something that generations of people are going to look at. There’s going to be a single tower that goes almost 700 feet in the air, and then it’s draped with some cables that have a very elegant catenary effect.”
That tower, along with parts of the deck, have been fabricated more than 6,000 miles away in China. They’ve been shipped piece by piece to the port of Oakland. Ibbs says doing it this way makes a lot of sense.
“Today’s engineers need to be more than a technician. They need to be a manager. So you’re concerned about what you’re building, and how much it’s going to cost, and how long it’s going to take. I think it’s unfortunate that the economics are such that we find it difficult, we in the United States, find it difficult to compete on big projects like this worldwide. But then on the other hand as a taxpayer, I want the government to be thrifty with my dollars.”
Story continues beneath video.
California officials have estimated that they’ll save at least $400 million by relying on low-wage Chinese labor. Former Governor Arnold Schwarzenegger visited the Chinese plant praising “The workers that are building our Bay Bridge.”
It’s not just California turning to China for help with large-scale infrastructure projects. Chinese companies have helped renovate the New York City rail and subway system as well a bridge over the Harlem River. Governments across the world are also turning to the Chinese as a first choice for bridges and rail.
It’s just a taste of things to come says Paul Fica with FTI Consulting in Seattle.
“Five out of the 10 largest contractors in the world are now Chinese contractors.”
Chinese companies are getting contracts because they’re often the lowest bidders. Some bids are so low that some Chinese companies are actually losing money on some large-scale projects. Fica says that’s a strategic move to edge out competitors. But he says there’s a tradeoff, for the purchaser of Chinese manufacturing services, when going with the lowest bidder.
“You don’t always get the lowest price and the highest quality. And I think that has largely been why some of the Chinese contractors are so effective at winning work — because of price. Yet, at the same time, (they're) not always effective in producing the highest quality product.”
American labor groups have also raised questions about the quality of Chinese workmanship.
The State of California is aware of the concerns. And state officials say they closely monitored the work done in China for the Bay Bridge. Tony Anziano with the California Department of Transportation says the state sent 65 engineers and inspectors to China.
“We had a full-time staff that was onsite, they were onsite 24/7. We had state employees that were living in China. So we didn’t just go there and inspect occasionally, we were there for the duration for all of the fabrication work.”
The lead contractor, American Bridge/Fluor, also sent an additional 250 inspectors to China. That’s a lot of people, making a lot of money, to make sure no one was cutting corners. Those costs weren’t factored into the initial $400 million dollar savings estimate.
“Those costs needs to be factored in upfront when somebody makes a price comparison,” said Roger Ferch, president of the American Institute of Steel Construction in Chicago. “It’s not just what the number is when you slice open the envelope.”
Ferch doesn’t trust the savings estimate coming from the state of California.
And he argues that any economic analysis also has to factor in not just what’s been saved, but what’s been lost.
“What is the total cost of that project in lost wages, lost taxes, lost economy in California?”
A growing number of politicians and pundits in California are now expressing anger that their bridge was largely built in China.
The contract was awarded in 2006, however, when state unemployment was around 5 percent. Today, California’s unemployment rate is 12.1 percent, the second highest in the nation.
But from a purely engineering perspective, William Ibbs from UC Berkeley says you can’t argue with the work from China. He says the quality controls and workmanship are top notch.
“It’s going to be a bridge that lasts hopefully a couple hundred years. And it’s going to be subjected to all sorts of elements: earthquakes, wind, corrosion from the sea. And, you know, it’s got to stand up.”
For the record, Ibbs is highly confident it will.
Zhenhua, the Chinese company helping build the bridge, is also confident in its work. The company president said, “When people see it, they will ask, ‘Who built it?… This will really raise our brand image.”