OHIO STEEL SHIPPING, PRODUCTION CONTINUE TO DECLINE THROUGH 2002; IMPORTS APPROACHING RECORD LEVELS

COLUMBUS, Ohio (December 5, 2002) –  All leading indicators for Ohio's steel industry are down through the first nine months of 2002, attributable in part to a significant gain in steel imports and the weakened domestic economy.

In the year after the loss of LTV Steel Corp. and CSC Ltd., Ohio's steel industry continues to experience declines in production, shipments, employment and capital investment.

According to the Ohio Steel Council's third quarter 2002 data report, steel production was 8.4 million tons for the first nine months, down 19 percent from the 10.4 million tons produced in the same period a year ago. For the quarter, steel production dropped 6 percent. Steel shipments after three quarters in 2002 reached 8.9 million tons, a 12 percent decline from the 10.1 million tons shipped between January and September 2001. Steel shipments in the quarter were down 3 percent.

The Council attributed the declines in part to the 2001 closings of LTV Steel Corp. in Cleveland and CSC Ltd. in Warren. International Steel Group (ISG), the company that bought LTV, is not reporting data to the Council.

Also contributing is a 34 percent increase in steel imports between July and September 2002. Total steel imports this year are projected to be the fourth highest steel import year in history, despite the president's move to impose tariffs on a portion of foreign steel.

"Until we see a decrease in imported steel, we'll continue to experience pricing volatility and a decline in shipments," said Jim Cowan, co-chair of the Ohio Steel Council and president and chief operating officer of V&M Star in Youngstown. "Ohio's steel industry has also been affected by the general condition of the overall U.S. economy and an increase in production capacity from domestic competitors."

Employment at Ohio's top steel-producing companies is nearly 16,000 through the first nine months of 2002, a 19 percent decline from the 19,771 who were employed in the same period of 2001. The drop is due to the loss of LTV and CSC, coupled with attrition at some companies.

Capital investment spending was $66,513,156 through September 2002, down 27 percent from $90,843,663 through nine months last year. Capital investment in the third quarter 2002 dropped 33 percent from a year ago.

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.