Oerlikon Metco Plans Production in New York Foreign-Trade Zone

You might care about this because a company called Oerlikon Metco (US) Inc. wants to start new production activities in Westbury, New York. This activity will happen within a special area called a Foreign-Trade Zone, or FTZ. An FTZ is like a secure area in the United States where businesses can bring foreign goods without immediately paying import duties. This specific request was sent to the Foreign-Trade Zones Board on June 29, 2026. Under FTZ rules, the company would only pay duties on specific foreign materials and finished products that the Board approves. The company plans to make several items, including aluminum oxide powder, chromium oxide powder, and titanium oxide powder. They also want to make sealants, mixtures of oxides and carbides, and thermal spray coating machines. These finished products have duty rates ranging from duty-free up to 5.5 percent. To make these products, Oerlikon Metco plans to import many foreign materials and components. These include various metal powders like tungsten carbide, nickel alloy powder, and cobalt alloy powder. They also plan to use chemicals such as contact grease and coolants, plastic and rubber parts, and various steel components like screws, nuts, and springs. Electronic parts like hard drives, monitors, and printed circuits are also on their list. Other items include sensors, valves, and specialized components for thermal spray machines. The duty rates for these imported materials can go up to 15 percent. This process allows the company to handle foreign goods more flexibly before they officially enter the US market. Some materials are subject to special trade rules from the Trade Act of 1974, which means they must enter the FTZ under a specific status called 'privileged foreign status'. This document offers a clear look into how companies use Foreign-Trade Zones for their manufacturing. It shows the detailed planning involved when a business wants to bring foreign materials into the U.S. and produce goods there. What stands out is the variety of specialized materials and equipment Oerlikon Metco plans to use. They are dealing with everything from specific metal powders and chemicals to advanced electronic components and machine parts for thermal spray coating. This wide range suggests complex manufacturing operations are being considered. Another interesting point is how the company handles materials that are subject to particular trade duties. The notice mentions products that fall under Section 122 or Section 301 of the Trade Act of 1974. For these items, there is a requirement to bring them into the FTZ with a 'privileged foreign status'. This means their duty rate is set at the time they enter the zone, which can be an important factor for companies managing costs and predicting expenses. This detail highlights how FTZs can offer specific customs benefits for businesses dealing with certain trade regulations. It demonstrates the practical application of these rules for manufacturers. The notice also gives an insight into the types of industries that benefit from FTZ programs, especially those that rely on importing many different components for their final products. It underlines the careful steps companies must take to comply with these rules while pursuing operational efficiencies. Many groups of people would find this legal document interesting and important. First, any businesses involved in manufacturing, especially those that import a lot of their raw materials or components, should pay attention. Companies that are considering setting up operations within a Foreign-Trade Zone would also learn a lot from this example. It shows the types of activities and detailed planning required for such a move. Legal professionals specializing in international trade law, customs regulations, and business compliance would also find this notice very relevant. They can see how the Foreign-Trade Zones Board applies its rules to real-world business proposals, particularly regarding duties and the 'privileged foreign status' for certain goods. Supply chain managers and logistics experts could also use this information. It highlights how businesses plan their import strategies to manage costs and comply with trade laws. Furthermore, companies in the thermal spray coating industry or those that produce similar specialized powders, sealants, or manufacturing equipment would be interested. This is because Oerlikon Metco is a player in that field. Finally, anyone interested in how federal agencies like the Department of Commerce make decisions about trade and manufacturing within the U.S. will find this document useful. It offers a transparent look into the public notification process and how stakeholders can offer their comments.