OHIO STEEL PRODUCTION DROPS, CAPITAL SPENDING RISES IN 1997

COLUMBUS, Ohio (March 17, 1998) –  A long strike caused steel production in Ohio to decrease more than 7 percent in 1997, while investment in new equipment and technology brought nearly a 25 percent increase in capital spending, 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 nearly 16 million tons of steel in 1997, compared to more than 17 million tons in 1996.

Steel production for the fourth quarter of 1997 was up 5.7 percent over the fourth quarter of 1996.

The year-end decline in production was largely the result of the strike that idled production for most of the year at Wheeling-Pittsburgh Steel Corp., which has five Ohio locations. Production increased in the fourth quarter, when operations resumed at Wheeling-Pittsburgh.

Meanwhile, capital investment spending by Ohio steel producers rose to more than $509 million in 1997, compared to nearly $408 million in 1996. Exports jumped 12 percent, to 207,606 tons in 1997 from more than 185,353 tons in 1996.

"The heavy increase in capital spending demonstrates that Ohio steelmakers are dedicated to remaining a competitive force on the domestic front as well as abroad," said Harold V. Kelly, co-chairman of the Steel Council and executive vice president and general counsel at Republic Engineered Steels, Inc. in Massillon.

"By working together, steel producers, steelworkers and government leaders can create a business climate that helps bring adequate returns on these investments and further strengthens the overall steel industry in Ohio," Kelly continued.

The strike at Wheeling-Pittsburgh Steel also affected 1997 shipments, which decreased about 3 percent compared to 1996 figures. Shipments, however, climbed in the fourth quarter, amounting to nearly an 11 percent increase over the fourth quarter of 1996.

Average employment in 1997 decreased 2.8 percent, mostly due to 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. During the time period covered by the year-end data report, the Council's member organizations were 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 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.