OHIO STEEL SHIPPING, PRODUCTION CONTINUE DOWNWARD TREND IN 2002; SIGNS OF MODEST RECOVERY IN 2003

COLUMBUS, Ohio (April 24, 2003) –  Final 2002 year-end data figures show a continued downward trend in Ohio's steel industry, but early signs in 2003 point to a recovery in some steel market sectors.

Ohio's steel industry experienced double-digit percentage declines in production, shipments, employment and capital investment in 2002 versus the previous year, due in part to the closing of LTV Steel Corp. in Cleveland in fourth quarter 2001.

Numbers from International Steel Group (ISG), the company that bought LTV, are not yet included in Ohio Steel Council data.

According to the Ohio Steel Council's fourth quarter 2002 data report, steel production was 10.7 million tons for the year, down 18 percent from the same period a year ago. For the quarter, steel production dropped 14 percent. Steel shipments in 2002 reached 11.3 million tons, an 11 percent decline from 2001. Steel shipments in the quarter were down 7 percent.

However, the steel industry is reporting slight price increases and projecting increased demand for steel in certain sectors in 2003. Improved operating efficiencies, investments in technology, quality product awards and successful mergers are indications of the industry's strength, in spite of the poor economic conditions.

Some Ohio steelmakers credit the Bush administration's 201 tariff program for helping position the industry to turn the corner, and urge the President the keep the initiative in place for the intended three years.

"As a whole, we've made tremendous strides in enhancing our operations and competitiveness during this difficult time, and we're confident that we'll be able to take full advantage of any upturn in market conditions." said Bill J. Bowling, executive vice president, COO and president-steel, The Timken Company in Canton, a member of the Council.

Employment at Ohio's top steel-producing companies was 15,409 at the end of 2002, an 18 percent decline from the 18,841 who were employed at the same period in 2001. The drop is attributed to the loss of LTV, as well as to continued restructuring and normal attrition at a number of member companies.

Capital investment spending was $95,655,107 for the year, a 35 percent drop from the $147,251,681 invested in 2001. For the quarter, capital investment spending was down nearly 50 percent to just below $30 million.

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 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.