US sees strategic gains in steel plant reopening

PORT OF SPAIN (CMC):

United States Deputy Secretary of State Christopher Landau on Monday said the reopening of a steel plant in Trinidad and Tobago reflects a commitment by the leaders of both countries to stimulate economic growth.

Speaking at the ribbon-cutting ceremony for Ibis Steel Company at Point Lisas in central Trinidad, Landau described the reopening of the former ArcelorMittal site, which closed in 2016, as a new chapter in relations between Trinidad and Tobago and the United States.

“Both President Trump and Prime Minister Persad-Bissessar came into office last year pledging to stimulate economic growth in each of our respective countries, and I think you can see at a place like this that both our countries, over the last several decades, have faced serious challenges in industrial development and in manufacturing,” he said.

Landau said both countries had witnessed factory closures and industrial decline, adding that their leaders had promised to revive sectors that had deteriorated over time.

“That was a promise made to the voters, and that was a promise that both these leaders fully intended to fulfil. These weren’t just going to be words, they’re going to be actions, and so our mission is to actually take our leaders’ vision and transform it into reality.”

He said governments in free market economies could not simply dictate economic outcomes.

“In the United States, we did many terrible things over the last several decades, and I don’t know, you in Trinidad, what your experience is, but in our country, we basically destroyed our own mining industry, our own processing industry through excessive environmental regulations, really counterproductive ones.

“Everybody wants a clean and safe environment, but at some point layers of regulation upon regulation don’t really materially help the environment, but they just certainly create a nightmare for people who are trying to run a business.”

According to Landau, those challenges contributed to the relocation of many American factories to China.

“We saw factories like this shuttered across our country, and now I see it’s not just our country, it’s other parts of the world that face the same thing,” he said.

“I think there is nothing more beautiful, frankly, than being able to see a plant like this that’s been shuttered come back to life. It’s like Lazarus arising from the dead again, and this is not just the metal that we’re seeing here, it’s the lives that are impacted.”

Ibis Steel Company, a local subsidiary of US-based Pinnacle Steel and Vanadium Corporation, occupies the site of the former ArcelorMittal steel mill, which closed in March 2016 amid financial losses, falling global steel prices, rising debt, and concerns over increasing energy costs. More than 600 workers lost their jobs when the plant shut down.

Jobs coming back

Landau also welcomed the return of jobs linked to the facility.

“The government of Trinidad and Tobago has spoken very eloquently about the 644 jobs,” he said. “Those jobs are coming back, as well as all the many other jobs.”

He argued that the project benefits both countries, not only through employment, but also by strengthening supply chains.

“That’s a win not only for Trinidad, but also for the United States, because one of the things that we lost is not only the jobs, but also the strategic positioning. We let a lot of our critical supply chain completely fall out of our hands.”

He warned that dependence on foreign suppliers for critical minerals and industrial inputs posed risks to the United States.

Landau praised Pinnacle for investing in a project that he said aligns commercial interests with broader economic goals.

“This plant is exactly what we’re talking about in diplomacy when I say there are so many win-win situations.

“We need these critical minerals. You need jobs. You have tailings and industrial residue that’s been left over from 100 years of industrialisation. This is a perfect example of what we’re talking about.

“That is great for Trinidad. It’s great for the United States, and I’m just really grateful to a company like Pinnacle for stepping into the breach.”

He also thanked the Trinidad and Tobago government for supporting the project, noting that negotiations had continued until shortly before the agreement was finalised.