U.S. Senator Charles E. Schumer today announced that he has introduced legislation in the Senate to reduce production costs for the VanDeMark Chemical Company in Lockport, NY.  Schumer’s legislation will become part of the Senate’s must-pass Miscellaneous Tariff Bill (MTB), and will eliminate a duty on an essential chemical VanDeMark uses in the production of an important additive for Coatings, Adhesives, and Sealants manufacturers.  A tariff was placed on this imported chemical to protect domestic companies who manufacture it, but domestic manufacturers no longer exist.  As such, the only effect of the tariff is to raise VanDeMark’s production costs. The company currently has to import all of this chemical from China and South Korea and the tariffs hinder a company’s ability to be price competitive.  This legislation will help level the playing field with competitors all over the globe without affecting U.S. based suppliers, since there aren’t any for this particular chemical, known as 4-Methylbenzenesulfonamide.

 

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

 

"This legislation will be a win-win for VanDeMark and its customers,” said Schumer. “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. ”

 

“I’m very happy that this MTB is going to be considered simply for the fact that with increasing competition around the world, specifically from china, 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 VanDeMark Chemical Inc. President & CEO Michael A. Kucharski “This legislation will also help keep businesses and jobs here in the US.” 

 

For over 20 years, VanDeMark has imported a special chemical for production of this critical additive from China and South Korea. The additive is used to improve the performance and shelf life of Coatings, Adhesives, and Sealants used for hard wood floors, ceramic tiles, soles of shoes, specialty paints and coatings, and sealants for car windshields

 

VanDeMark has not received a duty suspension in the past, but increased competition from China in the additives market has made it difficult for the company to maintain its market leadership position.

 

In an effort to level the playing field for VanDeMark Chemical Inc., Schumer introduced the MTB 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.