OHIO STEEL PRODUCTION RISES SECOND STRAIGHT QUARTER; STEEL SHIPMENTS POST GAIN THROUGH FIRST SIX MONTHS

COLUMBUS, Ohio (September 9, 1998) –  Steel production in Ohio increased for the second straight quarter in 1998 and climbed nearly 18 percent ahead of the pace that was set in the first half of 1997, according to a report by the Ohio Steel Council.

The Council's second-quarter Ohio Steel Data Report shows that total production by Ohio primary steel producers exceeded 8.9 million tons in the first six months of this year compared to about 7.6 million tons in the first half of 1997.

Steel production for the second quarter of 1998 was more than 17 percent higher than production in the corresponding quarter in 1997. Ohio steelmakers produced 4.4 million tons in this year's second quarter compared to 3.8 million tons in the second quarter of 1997.

In addition, steel shipments increased more than 15 percent through June 1998 compared to the first six months of 1997. For the quarter, shipments were up about 14 percent over the second quarter of 1997.

"Through significant investments in their people and facilities, Ohio steel producers have positioned themselves to capitalize on the strong market demand that we have seen to date and remain a competitive player in the global economy," said Harold V. Kelly, co-chairman of the Council and executive vice president at Republic Engineered Steels, Inc. in Massillon.

"While the first half of 1998 has been characterized by solid gains, changes in market conditions could very well have an impact on the Ohio steel industry in the last half of the year."

The Steel Council said record increases in steel imports and the aftermath of this summer's strike at General Motors Corp. are among the conditions affecting domestic producers. The Council said imports from Japanese steelmakers alone have jumped 113 percent from June of last year.

Capital investment spending remained steady for the first six months of 1998, reaching nearly $201 million this year compared to about $202 million in the first half of 1997. But capital spending for the quarter was down 5.8 percent, reaching about $111 million in this year's second quarter compared to more than $118 million in the 1997 corresponding quarter.

The Council attributed the decline in the quarter to growing concern over economic conditions in the last half of the year.

The Ohio Steel Data Report, compiled for the Ohio Steel Council by Youngstown State University's Center for Urban Studies, covers statistics from the Ohio facilities of the Council's steel-producing members. These companies account for approximately 90 percent of the steel produced in Ohio.

The Ohio Steel Council, formerly the Ohio Steel Commission, appointed in 1991 by Gov. George V. Voinovich, 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., Armco Inc. (associate member), CSC Ltd., LTV Steel Co., Washington Steel (associate member), North Star Steel Ohio, Republic Engineered Steels Inc., The Timken Company, USS/KOBE Steel Co., WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp., the United Steelworkers of America, the Ohio Legislature, Ohio Department of Development, The Ohio State University and Youngstown State University.