OHIO STEEL INDUSTRY SHOWS STRENGTH WITH GAINS IN CAPITAL SPENDING AND EMPLOYMENT IN THIRD QUARTER, FIRST NINE MONTHS OF 2007

COLUMBUS, Ohio (January 29, 2008) – Capital spending in Ohio’s steel industry jumped dramatically during the third quarter of 2007 while employment also showed gains, according to data released today from the Ohio Steel Council.

Capital investment for the quarter was $75,450,239, a 65.29 percent increase over the same period a year ago. Through the first three quarters of 2007 capital expenditures for the industry were $195,527,745. That represents a 4.05 percent increase over the same period in 2006, as the industry invested in new equipment and technology to maintain its competitive position in the global marketplace.

During the third quarter of 2007, employment at Ohio steelmakers grew to an average of 14,229, an increase of 3.83 percent compared with the third quarter of 2006, and payroll increased 1.45 percent to $241,423,450. Payroll in the first nine months of 2007 was $723,951,438, a .67 percent increase over the same period last year.

Steel production totaled 3,541,914 tons during the quarter, a decline of 7.46 percent over the same period a year earlier, while shipments were down 0.85 percent to 3,932,760 tons, compared to the year-ago period.

Steel production during the first three quarters of the year totaled 10,681,714 tons, down 7.62 percent compared to the corresponding period in 2006. There were 11,526,103 tons shipped during the period, a decline of 5.5 percent, compared to the year-ago period.

“We continue to see the effects of slower growth in the primary markets for steel, including automobiles, housing, and their supplier industries,” said Roger Lindgren, president and chief executive of V&M STAR and co-chairman of the Ohio Steel Council. “However, we expect these markets to improve in 2008 with a renewed demand for steel.”

The Ohio Steel Data Report, compiled by Youngstown State University’s Center for Urban Studies, covers statistics from Ohio facilities of the Council’s steel-producing members. The data is forwarded to the Ohio Steel Council in aggregate, so the contribution of any single company cannot be determined. For more data and past data reports, visit www.ohiosteel.org.

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., ArcelorMittal, Ohio Department of Development, Ohio House of Representatives, Ohio Senate, PRO-TEC Coating Company (joint venture of U. S. Steel and Kobe Steel), Republic Engineered Products, Inc., Thomas Steel Strip Corp., The Timken Company, United Steelworkers, U.S. Steel-Lorain Tubular Operations, V&M STAR, WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp., Cleveland State University and The Ohio State University.