United Steelworkers chief seeks Triangle Akron plans delay

United Steelworkers (USW) president Leo Gerard has asked the Obama administration to coordinate an inquiry into the recent agreement between the University of Akron and China’s Triangle Group, reports Tire Review. In a 12 October letter written to Gene Sperling, director of the National Economic Council, Gerard stated: “Polymer research has critical economic and national security applications and the transfer of technology contemplated by this relationship demands strict scrutiny.”

UA and Triangle recently formed an agreement that will see the tyre maker “hire university researchers over the next few months to begin work as soon as January at the Akron Polymer Research Innovation Center on the UA campus, university officials said. In essence, UA will share the results of polymer research with the tyre-maker. This news came at the same time Triangle Group announced it will make Akron its US home by opening research and development operations in the city, and later expanding to include a sales office. All told, Triangle plans to add 30 jobs in the city.

The full text of Gerard’s letter is as follows:

“I am writing to request that you coordinate an inquiry by the Administration into the recent agreement by the University of Akron to share university research in the critical area of polymers with China’s Triangle Group. Polymer research has critical economic and national security applications and the transfer of technology contemplated by this relationship demands strict scrutiny.

“China’s Triangle Group is one of that country’s leading tyre producers. As you are well aware, the Obama Administration took action under Section 421 of our trade law, responding to a filing by the United Steelworkers union, to address surging imports of passenger and light truck tyres from China. In making its decision, the Obama Administration recognized the importance of the tire industry to our nation’s economic and security interests. Since the 421 decision was implemented, investment and job creation have increased in the industry here in America. Indeed, announced investments by the industry have amounted to hundreds of millions of dollars in recent months.

“Polymer research goes to the heart of developing and bringing to market new compounds that will enhance the competitiveness of our industry. In recent years, for example, polymer research has aided in the creation of tyre compounds that have reduced rolling resistance, thereby enhancing fuel economy for passenger, light and commercial trucks. The research has enhanced the outlook for our nation’s tire producers in terms of products they sell here and around the world.

“Thus, it is particularly disturbing that the University of Akron (UA) is planning on engaging in a transaction that will enable Triangle to hire researchers at the Akron Polymer Research Innovation Center on the UA campus. Triangle Group intends to open a research and development center in Akron to coordinate its activities and take advantage of UA’s research. The University has been the recipient of large amounts of state and federal support – indeed, under the American Recovery and Reinvestment Act alone the University of Akron apparently received $33.2 million in taxpayer funds.

“UA’s research efforts in polymers and the technology and research that will be transferred to Triangle is surely viewed by that company as giving it insights, if not direct technology transfers, of what has given our manufacturers an international competitive edge. Research is, as you know, a two-way street and it is critical that the Administration evaluate what information UA’s researchers may have gained from working with our tire manufacturers – much of which was funded with federal tax dollars through the R&D tax credit. American taxpayers deserve to know that the investments that have been made with their hard-earned dollars in critical technologies are not being simply auctioned off to China to assist them in their technological and economic development.

“Until a full investigation of the technology and research that will be transferred and the implications of that transfer can be completed, I urge that the Obama Administration direct the University of Akron to suspend its plan to assist the Chinese in gaining access to America’s technology.”