LOCKPORT
Tariff suspension could help company
LOCKPORT — A special break on import duties could help a Lockport chemical company maintain its leadership in the sale of a paint additive in the face of Chinese competition.
Sen. Charles E. Schumer said Friday he has introduced a provision to suspend the tariff on a chemical that VanDeMark Chemical Co. relies on to produce the additive. Paul Ameis, VanDeMark’s chief operating officer, said the ingredient, a chemical called 4- methylbenzenesulfonamide, is no longer produced in the U. S. It has to be imported from China, South Korea or India.
Ironically, China is the primary competition for the finished additive, too. “They can control the business if they want to,” Ameis said.
To try to prevent the Chinese from doing that, Schumer is inserting a provision in what he called a “must-pass” tariff bill that would cancel the import duty on the chemical for two years.
Schumer said, “It makes no sense for us to have a tariff in place when there are no domestic producers of this particular chemical. This legislation will help VanDe- Mark thrive, keep their competitive edge and help preserve jobs.”
Ameis said VanDeMark buys about 2.5 million pounds of the imported chemical each year, spending $2 million to $3 million. He said the 6.5 percent tariff costs the company an additional $162,500 a year.
Schumer said he intends to try to insert the suspension provision into the Miscellaneous Tariff Bill, which is expected to pass the Senate late this year or early in 2010. Ameis thanked him for that.
“It helps us defend our market share against China,” Ameis said.
He said VanDeMark controls 50 percent to 70 percent of the market for the finished additive, which is used in “high-end” paints as well as coatings and adhesives.
Ameis said VanDeMark recently cut the price of the additive to try to maintain market leadership.
The additive accounts for about one-third of the company’s business, he said. VanDeMark currently employs about 75 workers.
A North Carolina company also used to import substantial amounts of the key ingredient in the additive, but Ameis said that firm has withdrawn from that part of the business, leaving VanDe- Mark alone as a major American user of the chemical.
“It is good to see that Congress is looking out for small companies like ours so we can continue to be competitive in the world market and that we can compete on a level playing field,” said Michael A. Kucharski, VanDeMark’s president and chief executive officer.
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