OHIO STEEL PRODUCERS CALL FOR EMERGENCY RELIEF FROM UNFAIR IMPORTS, CITINIG ECONOMIC DAMAGE TO INDUSTRY, LAYOFFS

COLUMBUS, Ohio (October 1, 1998) –  The Ohio Steel Council is calling on state and federal elected officials to stop the flood of unfairly traded steel imports before domestic steel producers suffer further injury and thousands lose jobs.

Ohio's steel economy could be in a very precarious position as Asia and Russia continue to unload under-priced steel goods in the Ohio and U.S. marketplace.

"With dumped imports increasing sharply and prices dropping, Ohio steel producers are acutely aware that the steel industry could be pushed into a severe and long-lasting recession. It is no exaggeration to say that we are in a state of alarm," said George Manos, co-chairman of the Council and vice president of business processes at USS/KOBE Steel Company in Lorain.

In a resolution adopted recently, the Council notes that the U.S. steel industry has invested $50 billion in recent years in new plants and equipment, making it the most competitive and technologically advanced in the world. The U.S. steel industry is also a world leader in recycling, emission controls and safety.

In Ohio, steel producers have invested more than $3 billion in capital improvements in the last five years. The industry employs more than 30,000 Ohio residents.

Still, no industry, no matter how strong, can withstand a strategy of dumping, where a foreign product is unloaded at a fraction of its value, often below the cost of production. Current trade laws were not written in anticipation of an economic collapse of the magnitude occurring in many foreign countries, the Council maintains.

"The situation is extraordinary. It requires swift, effective action on the part of our elected leaders," Manos said. "Now is the time to act, not after the damage is done. Already layoffs are occurring around the country and orders are falling.

"The U.S. steel industry is vibrant and advanced. It is not in need of long-term trade protection. What we're asking for is an immediate response to a crisis situation."

The Council said state and federal government leaders can help the industry by pressuring the Clinton Administration to increase enforcement of U.S. trade laws and to take immediate emergency action.

Steel imports in May 1998 increased 28.5 percent from their level the previous year. Through June 1998, imports from Japan were up 113.7 percent, while imports from Korea rose 89.5 percent. The rising tide of steel imports is expected to reach a record 35 million tons in 1998.

The Ohio Steel Council, 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.