OHIO'S STEEL INDUSTRY REPORTS LOWEST YEAR-END DATA SINCE 1998; BETTER MARKET CONDITIONS EXPECTED IN 2002

COLUMBUS, Ohio (April 25, 2002) –  Ohio's steel industry - ranked first in the nation for tons of steel produced and processed - reported historic lows for production, shipping, employment and capital spending in 2001, the lowest figures since the outset of the imports crisis in 1998.

The Council is expecting better market conditions in 2002.

"We have good reason to expect a recovery in 2002, with President George Bush's tariffs on certain imported steel products and the U.S. economy showing signs of improvement," said Jim Cowan, co-chair of the Ohio Steel Council and general manager of North Star Steel Ohio. "We are an industry technologically positioned to take advantage of any turn for the better in market conditions."

The following is a summary of 2001 year-end data, as compared to data from previous years:

- Steel production was 13.1 million tons, down 24 percent from 17.3 million tons in 2000, or down 21 percent from 16.6 million tons in 1998.

- Shipments were 12.7 million tons, down 20 percent from 15.9 million tons in 2000, or down 13 percent from 14.7 million tons in 1998.

- Employment was 18,841, down from 23,404 in 2000 or 27,697 in 1998, an overall decrease of 32 percent.

- Capital spending was $147 million, down from $303 million in 2000 or $425 million in 1998, an overall decrease of 65 percent.

In most major categories, including production, shipping, employment and capital spending, Ohio steel industry figures are at their lowest ebb since the middle 1990s.

The decreases can be attributed in large part to the closing of CSC Ltd. in Warren and LTV Steel Company in Cleveland. CSC ceased operations in January 2001 and LTV severely curtailed production in the third quarter and closed in the fourth quarter 2001.

Unfairly traded steel imports, low steel pricing and a sluggish U.S. economy also undermined the performance of Ohio steel producers in 2001, the Ohio Steel Council reported.

According to the Ohio Steel Council, the steel industry's poor market conditions had a direct impact on state and local economies. Ohio steel companies' spending for electricity was down 22.5 percent in 2001, as compared to 2000; local and state taxes paid by steel companies were down 29.6 percent; training and education expenditures were down 66.4 percent; and charitable contributions were down 29 percent.

"The health of the steel industry has far-reaching effects. For every one person employed in steel, another two are employed in industries closely tied to it. 2001 was not good for steel, and it was not good for economies tied to steel," Cowan said.

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, which account for approximately 90 percent of all steel produced in Ohio.

The Ohio Steel Council, appointed by the governor, 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., North Star Steel Ohio, Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, Pittsburgh Logistics Systems, Inc., PRO-TEC Coating Company, Republic Technologies International, Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, WCI Steel, Inc., and Wheeling-Pittsburgh Steel Corp.