OHIO STEELMAKERS REPORT MARKED INCREASE IN CAPITAL SPENDING; SHIPPING AND PRODUCTION ALSO CLIMB DURING FIRST QUARTER


COLUMBUS, Ohio (May 26, 2004) –  Leading indicators for Ohio steel producers in 2004’s first quarter showed strong increases in capital spending, shipping and production.

Capital investment spending grew to $36.7 million, up 64.6 percent from the same period last year. With an eye toward improving productivity and quality, steel companies continue to invest heavily in their Ohio facilities in 2004.

Ohio’s steel production and shipments also rose during the first quarter. Production numbers climbed to 3.6 million tons, a 13.3 percent increase from a year ago, while shipments rose 13.1 percent, reaching 3.8 million tons.

Ohio Steel Council production and shipments have increased substantially during the past 12 months. These gains primarily are attributed to the addition of International Steel Group Inc. (ISG), which joined the council in 2003. However, the inclusion of ISG’s data was not a major factor in the sharp increase in production and shipments occurring in 2004’s first quarter.

“Global demand for steel is expected to increase 6.2 percent this year,” said Patrick Tatom, president and chief executive officer of WCI Steel, and a member of the Ohio Steel Council. “This trend is reflected in the increases that we’ve seen in Ohio in the first quarter.”

Ohio steel employment fell 7.4 percent to 15,142 in 2004’s first quarter compared to 2003’s numbers. Meanwhile, first quarter payroll dipped 2.7 percent to $225 million compared to the same time period a year ago.

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.

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., International Steel Group Inc., Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, PRO-TEC Coating Company, Republic Engineered Products Inc., Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, V&M STAR, WCI Steel Inc. and Wheeling-Pittsburgh Steel Corp.