OHIO STEEL PRODUCERS PLAN TO INVEST MORE THAN $530 MILLION IN 1998 CAPITAL IMPROVEMENTS

COLUMBUS, Ohio (January 26, 1998) –  Ohio steel producers plan to invest in excess of $530 million in capital improvements across the Buckeye State during 1998, an increase of nearly $100 million over 1997 spending.

The Ohio Steel Council reported today that the $530 million projected for 1998 compares to 1997 capital spending of almost $433 million. The figures include investments by the nine primary steelmakers that belong to the Steel Council, as well as capital investment by North Star BHP Steel Co. in Delta, Ohio, and North Star Steel Co. in Youngstown, Ohio.

"By continuing to invest heavily in their facilities, Ohio steelmakers are demonstrating their commitment to a strong and viable position in this highly competitive industry," said Harold V. Kelly, co-chairman of the Steel Council and executive vice president at Republic Engineered Steels, Inc. in Massillon.

"The industry’s future vitality depends upon the ability of management, labor and government to cooperatively advance initiatives that maximize profitability and encourage further investment in Ohio facilities."

The 1998 figures reflect several major projects that will begin or continue this year:

• - LTV Steel Tubular Products Co.’s new $66 million automotive tubing plant in Marion.
  
  
• - The Timken Company’s $55 million investment in new rolling and bar processing equipment at its Harrison Steel Plant in Canton.
  
  
•  - CSC Ltd.’s $100 million modernization in Warren that includes installation of ultra-high-power melting, continuous casting and other new technologies.

The 1998 projections follow several years of heavy capital investment in the Buckeye State. The Steel Council reported statewide capital spending at $718 million in 1996, $890 million in 1995, $450 million in 1994 and $390 million in 1993. The Council noted that 1995 and 1996 were banner years for capital improvements, as they included construction of North Star BHP’s new minimill in Delta.

The Ohio Steel Council (formerly the Ohio Steel Commission), appointed in 1991 by Governor George V. Voinovich, is a public-private partnership designed to strengthen the ties among the steel industry, the state of Ohio and its citizens. The Steel Council is comprised of AK Steel Corp., Armco Inc., CSC Ltd., LTV Steel Co., Lukens Inc. (associate member), Republic Engineered Steels, Inc., The Timken Company, USS/KOBE Steel Company, WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp., the United Steelworkers of America, the Ohio Legislature, the Ohio Department of Development, The Ohio State University and Youngstown State University.