[Federal Register Volume 67, Number 40 (Thursday, February 28, 2002)]
[Notices]
[Pages 9329-9330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4736]


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DEPARTMENT OF LABOR

Employment and Training Administration

[NAFTA-04812]


Cemex Kosmos Cement Co., Pittsburgh Plant, Pittsburgh, PA; Notice 
of Negative Determination On Reconsideration

    On December 3, 2001, the Department issued a Notice of Affirmative 
Determination Regarding Application for Reconsideration for NAFTA-TAA 
applicable to workers and former workers of the subject firm. The 
notice will soon be published in the Federal Register.
    The denial of NAFTA-TAA for workers engaged in activities related 
to the production of cement at Cemex Kosmos Cement Company, Pittsburgh 
Plant, Pittsburgh, Pennsylvania was based on the finding that criteria 
(3) and (4) of the group eligibility requirements of paragraph (a)(1) 
of section 250 of the Trade Act, as amended, were not met. Imports from 
Canada or Mexico did not contribute importantly to workers' 
separations. There was no shift in production from the subject firm to 
Canada or Mexico during the relevant period.
    The petitioner claims that jobs at the subject plant were lost 
after Cemex acquired Southdown Kosmos Cement Company. That is, the 
petitioner indicated that the acquisition of the subject plant and 
another Southdown Kosmos facility suddenly changed the subject plant's 
market area which resulted in the shutdown of the subject plant, due to 
the Southdown Louisville plant's market area moving North, resulting in 
the closure of the subject plant and the conversion of that facility to 
a cement terminal. The petitioner is of the opinion that this led to 
cheaper Mexican cement and clinker imports to be absorbed in the 
Southern and Western Market.
    Review of the investigation and further contact with the company 
revealed that Southdown's (Louisville, Kentucky) market area was not 
reduced by additional movement North into the subject plant's market 
area.
    According to the company, the preponderance in the declines in 
employment at the Pittsburgh Plant are related to the subject plant 
being the highest cost with the lowest capacity within Southdown's 
operations. The Louisville plant completed a large expansion, in which 
production was increased and the manufacturing cost was lowered. 
Therefore, with the unexpected slowdown in the economy

[[Page 9330]]

and market excess capacity developed within Southdown, the decision was 
made to discontinue manufacturing operations in Pittsburgh and maximize 
production at the Louisville Plant and deliver cement into the 
Pittsburgh market (via the Pittsburgh plant functioning as a terminal).
    The company did not import products from Mexico or Canada that are 
like and directly competitive with what the subject plant produced.

Conclusion

    After review of the application and investigative findings, I 
conclude that there has been no error or misinterpretation of the law 
or of the facts which would justify reconsideration of the Department 
of Labor's prior decisions. Accordingly, the application is denied.

    Signed at Washington, DC, this 5th day of February, 2002.
Edward A. Tomchick,
Director, Division of Trade Adjustment Assistance.
[FR Doc. 02-4736 Filed 2-27-02; 8:45 am]
BILLING CODE 4510-30-M