OHIO STEEL PRODUCTION, SHIPMENTS CONTINUE TO FALL IN FIRST QUARTER 2001

COLUMBUS, Ohio (October 24, 2001) –  Ohio steel production and shipments for first quarter 2001 showed marked decreases, reflecting dire market conditions for domestic steel.

Production fell 16.5 percent, from 4.3 million tons in first quarter 2000 to 3.6 million tons in first quarter 2001. Shipments dropped 13.4 percent, from 4.2 million tons in the year-ago period to 3.6 million tons in first quarter 2001.

Capital spending fell 36 percent, from $60 million in first quarter 2000 to $38 million in first quarter 2001.

Three Ohio Steel Council member companies are in Chapter 11 bankruptcy and a fourth, CSC Ltd. - now a former member - has closed.

"This is a grim period for the steel industry. A soft U.S. economy, low steel pricing, high energy costs and unfairly traded imports have combined to produce the worst market conditions for the industry since the early 1980s," said James Cowan of North Star Steel Ohio, co-chairman of the Ohio Steel Council.

"We remain hopeful and determined nevertheless. The Section 201 investigation initiated by the Bush Administration and the ITC ruling announced October 22 should address trading inequities that have impeded an otherwise competitive industry. From the standpoint of efficiency and technology, we are positioned for a strong recovery," Cowan said.

Employment at Ohio steel producing companies fell 9.3 percent between first quarter 2001 and the year-ago period. The decrease represents permanent job cuts, as opposed to temporary layoffs.

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., LTV Steel Company, North Star Steel, 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, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp. and Youngstown State University.