OHIO STEEL PRODUCTION RISES FOURTH STRAIGHT QUARTER; STEEL SHIPMENTS REMAIN STEADY THROUGH 1996

COLUMBUS, Ohio (March 13, 1997) –  Steel production in Ohio increased four straight quarters in 1996 and ended the year with a gain of 7 percent over 1995 production, the Ohio Steel Council reported today.

The Council's fourth-quarter and year-end Ohio Steel Data Report shows that the state's nine primary steelmakers produced more than 19.9 million tons of steel in 1996, compared to nearly 18.7 million tons in 1995.

Steel production for the fourth quarter of 1996 was up 6 percent over the fourth quarter of 1995.

Ohio steel shipments remained steady, exceeding 14.5 million tons in both 1996 and 1995.

"Ohio steel producers have enhanced their competitive positions by developing some of the most advanced production techniques in the world," said Harold V. Kelly, co-chairman of the Steel Council and executive vice president and general counsel at Republic Engineered Steels, Inc. in Massillon.

"These technological improvements have helped the Buckeye State remain an industry leader, and one of the nation's two largest steel-producing states."

A stronger demand for steel, particularly through the first three quarters of 1996, contributed to the rise in production for the year. For the fourth quarter, the Steel Council attributed increased production to productivity improvements, expectations for stronger demand in early 1997 and the effects of outages during the 1995 fourth quarter.

Shipments posted a gain through the first nine months of 1996 but declined in the fourth quarter, attributable to slightly weaker domestic demand in that period.

Ohio steel producers spent nearly $408 million to upgrade facilities in 1996, building upon a banner year in 1995 for capital investment spending.

Exports dropped in 1996 as a result of stronger domestic demand, while average employment declined, primarily because of attrition.

The Ohio Steel Data Report, compiled for the Council by Youngstown State University's Center for Urban Studies, covers statistics from the Ohio facilities of the Council's nine steel company members. These companies account for more than 95 percent of the steel produced in Ohio.

The Ohio Steel Council (formerly known as the Ohio Steel Commission) is a public-private partnership to strengthen ties among the steel industry, the state of Ohio and its citizens. The Council's member organizations are AK Steel Corp., Armco Inc., CSC Ltd., LTV Steel Co., 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. Lukens Inc. is an associate member.