August 20, 2018 Raul M. Gutierrez Muguerza Chief Executive Officer Deacero Ave Lazaro Cardenas #2333 Col. Zona Loma Larga Oriente San Pedro Garza Garcia, Nuevo León C.P. 66266 Sent: Via Email Dear Mr. Gutiérrez, When Deacero acquired Mid Continent Nail Corporation in 2012, you stood in Poplar Bluff, Missouri and said, “We want to grow Mid Continent and have the manufacturing presence in the United States, and Poplar Bluff is ideally located in the center of the country, which we see as a competitive advantage.” Because of the hardworking people of Poplar Bluff, that competitive advantage is stronger than ever today. Indeed, I visited with the employees of Mid Continent this past Friday and I saw firsthand their strong dedication to their craft and their passionate desire to keep manufacturing products made in America. Mid Continent employees told me that they believe your company is committed long-term to the Poplar Bluff factory. However, there are reports that your company may completely shut down the factory by Labor Day of this year because of the ongoing negotiations over tariffs. As the company awaits word from U.S. Department of Commerce on approval for 24 exclusions, I strongly urge you to keep the factory open. Do not let the good people of Poplar Bluff down and go back on your word. I have told the Trump Administration that Mid Continent makes a strong case for an exemption and I continue to urge the Department of Commerce to grant it quickly, but the fact remains that your company also has a critical role to play. As a company with a global presence and many locations, Deacero is clearly not struggling to make ends meet. The reality is that Deacero can afford to keep the factory open, and in turn, help keep men and women employed who simply want to do right by their families and earn a living. As you consider your options, I want to call attention to two factors that concern me as you decide on Mid Continent’s future. First, one of Deacero’s brands, Aceros Nacionales, also produces nails, but it does so in Mexico. The negotiation over tariffs should not be an excuse for you to kill American jobs and consolidate Deacero’s nail manufacturing to Mexico. Second, according to many reports, you have fought with steel manufacturers in the United States over potential dumping violations made by Deacero. As U.S. steel manufacturers begin to rebound because of the administration’s negotiations, I certainly hope that you would not make decisions based on previous grudges. I hope these factors are not part of your deliberation come Labor Day and that you will remember why Poplar Bluff provides a “competitive advantage.” The bottom line is that the employees at Mid Continent and their families are your competitive advantage. All over media reports, you tout Deacero as a family-owned business. It’s a great selling point, but as you grow that business, don’t forget the families of Poplar Bluff. Please keep your word from 2012 and grow Mid Continent’s presence in the United States. Sincerely, Josh Hawley