LEGISLATION: Schumer aims to help VanDeMark

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VanDeMark Chemical could see reduced costs if a bill introduced by U.S. Sen. Charles Schumer becomes law. The bill would eliminate tariffs for two years on a chemical the company uses. That chemical is not produced in the U.S., so it must be imported. JOE EBERLE/FILE PHOTO

November 7, 2009

Staff Reports The Lockport Union-Sun %26 Journal Sat Nov 07, 2009, 02:34 AM EST

Lockport’s VanDeMark Chemical could see a large reduction in costs, if U.S. Sen. Charles Schumer has his way.

Schumer announced Friday that he has introduced legislation in the U.S. Senate that will reduce production costs for the VanDeMark Chemical Co.

Schumer’s legislation will become part of the Senate’s Miscellaneous Tariff Bill and would eliminate a duty on an essential chemical VanDeMark uses in the production of an important additive used to manufacture coatings, adhesives and sealants.

Schumer said that reducing VanDeMark’s costs will allow them to stay competitive and help maintain good-paying jobs and expand their customer base in difficult economic times. The company currently employs 75 people.

“This legislation will be a win-win for VanDeMark and its customers,” Schumer said. “This tariff suspension will help the company make their products more competitive, ultimately reducing costs for the company and consumers. 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 VanDeMark thrive, keep their competitive edge and help preserve jobs.”

A tariff was placed on the imported chemical VanDeMark uses to protect domestic companies who manufacture it, but domestic manufacturers no longer exist, a statement from Schumer’s office said. As a result, the only effect of the tariff is that it raises VanDeMark’s production costs. The company currently has to import all of this chemical from China and South Korea and the tariffs hinder the company’s ability to be price-competitive. The legislation will help level the playing field with competitors all over the globe without affecting U.S.-based companies, since there aren’t any domestic suppliers for this particular chemical, known as 4-Methylbenzenesulfonamide.

The chemical is used to improve the performance and shelf life of coatings, adhesives and sealants used for hardwood floors, ceramic tiles, soles of shoes, specialty paints and coatings and sealants for car windshields.

VanDeMark Chemical Inc. President and CEO Michael Kucharski said he was happy that the bill would be considered by leaders, because it should help U.S. businesses handle increased global competition.

“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,” Kucharski said. “This legislation will also help keep businesses and jobs here in the U.S.”

Schumer introduced the bill to be considered by the Finance Committee as part of its larger MTB bill. The MTB is expected to pass the Senate by year’s end or early next year, according to Schumer.

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