OHIO STEEL SHIPPING, PRODUCTION DECLINE IN FIRST HALF 2002; SOME IMPROVEMENT NOTED IN PRICING REPORT

COLUMBUS, Ohio (November 1, 2002) –  Aggregate figures for production, shipment, capital investment spending and employment for Ohio's steel industry show a decline for the first six months of 2002 as compared to the same period a year ago.

According to the Ohio Steel Council's mid-year 2002 data report, production was 5.7 million tons in the first half of 2002, down from 7.5 million tons in the first half of 2001, a drop of 24 percent. Steel shipments were 6.1 million tons in the first half of 2002, down from 7.2 million tons in the year-ago period, a decrease of 15 percent.

Meanwhile, employment dropped nearly 25 percent at Ohio's top steel-producing companies, from 21,435 in the first half of 2001 to 16,097 in the first half of 2002.

Capital investment spending was $48,942,860 in the first half of 2002, down from $64,469,667 in the first half of 2001, a decrease of 24 percent.

These low figures may be attributed, in large part, to the closing of LTV Steel Company and CSC Ltd. in 2001.

Individual Ohio steel companies are reporting some improvement in pricing and orders, but this improvement is not reflected in the aggregate figures because of the loss of LTV Steel and CSC. International Steel Group (ISG), the company that bought LTV, is not reporting data to the Ohio Steel Council at this time.

"Ohio suffered a huge blow in 2001 with the shutdown of LTV and CSC. It's unrealistic to expect a restoration to pre-crisis production and shipment levels in 2002. However, we're experiencing some signs of improvement. Whether such signs continue will depend on the enforcement of President George Bush's tariff's, which have already been compromised by special dispensations for a number of product categories. Despite an improvement in pricing, the volume of foreign steel imported to the U.S. remains very high," said Jim Cowan, co-chair of the Ohio Steel Council and president and chief operating officer of V&M Star in Youngstown.

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