OHIO STEEL PRODUCERS SPEND MORE THAN $100 MILLION ON CAPITAL INVESTMENTS, CONTINUE TREND OF UPGRADING FACILITIES

COLUMBUS, Ohio (January 15, 2003) –  Despite the weakened domestic economy and challenges facing the manufacturing sector, Ohio's steel producers spent in excess of $100 million to upgrade and improve their Ohio facilities in 2002.

The Ohio Steel Council reported today that the figures represent the combined investment spending by the majority of Ohio's steelmakers. The aggregate dollar amount is a year-end estimate, as many steel companies are closing books and will finalize figures in January.

The Council noted that the steel industry is extremely capital intensive and that Ohio steel producers are committed to making the necessary improvements to remain competitive in the global marketplace.

Ohio companies continually have invested in their facilities, spending more than $550 million on upgrades in the last three years alone. In 2001, nearly $150 million was spent on capital improvements at Ohio plants.

"Through good economic times and bad, Ohio's steel industry has a lengthy history of making critical investments in plants and operations to further improve efficiency and performance," said Jim Cowan, co-chair of the Ohio Steel Council and president and chief operating officer of V&M Star in Youngstown.

"Capital improvement initiatives are part of an ongoing strategy aimed at ensuring our industry's long-term viability and competitiveness. Ohio steel producers are committed to strengthening the industry, and we have every reason to believe we'll see high levels of capital spending in 2003."

The 2002 figures include several major projects that were initiated or in progress in 2002:

- More than $40 million in combined maintenance and tooling projects for Akron-based Republic Engineered Products and Canton-based The Timken Company.

- V&M Star's $2.5 million investment in its meltshop, including a building extension and new equipment to greatly improve its efficiency.

- WCI Steel, Inc.'s more than $5 million in new NOx monitors, basic oxygen furnace vessel replacement, hydrogen annealing expansion, new solid waste facility and new pond liners in Warren.

The Ohio Steel Council is a public private partnership designed to strengthen ties among the steel industry, the state of Ohio and its citizens. The Council's member organizations are AK Steel Corp., V&M Star, Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, PRO-TEC Coating Company, Republic Engineered Products, Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, WCI Steel, Inc., and Wheeling-Pittsburgh Steel Corp.