LEADING OHIO STEEL INDICATORS DECREASE SHARPLY THROUGH MID-2001

COLUMBUS, Ohio (December 5, 2001) –  Amidst continuing economic turmoil, leading indicators for Ohio steel producers showed marked decreases in the first half of 2001, as compared to the same period a year ago.

Production fell 14.43 percent, from 8.8 million tons in the first half of 2000 to 7.5 million tons in the first half of this year. Shipments declined 13.8 percent, from 8.4 million tons in the first half of 2000 to 7.2 million tons in the first half of 2001.

Meanwhile, employment dropped 10 percent at the state's top steel-producing companies, from 23,898 in the first half of 2000 to 21,435 through the first six months of 2001.

Capital spending fell 51 percent, from $131.9 million in the first half of 2000 to $64 million in the first half of 2001.

Throughout the first six months of this year, the percentage decreases in shipments, production and employment were fairly constant. However, a more dramatic drop occurred in capital investment as the year progressed. Capital spending decreased 36 percent in first quarter but fell 63 percent in the second quarter.

"Ohio contains some of the world's most technologically advanced steel-producing facilities, with great potential for improved earnings in 2002," said James Cowan, co-chair of the Ohio Steel Council and general manager of North Star Steel Ohio in Youngstown.

"Let there be no doubt, current economic conditions are very challenging. But with fair treatment from our governments and our trade laws, we are poised to build on a strong foundation. For many years, Ohio steel producers have spent more than $400 million in important capital improvements consisting mainly of state-of-the-art technological advancements," he said.

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, 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, Stark State College of Technology, The Timken Company, United Steelworkers of America, USS Lorain Pipe Mills, WCI Steel, Inc. and Wheeling-Pittsburgh Steel Corp.