OHIO STEEL PRODUCERS PLAN TO INVEST MORE THAN $538 MILLION IN 1999 CAPITAL IMPROVEMENTS

COLUMBUS, Ohio (December 28, 1998) –  Despite the financial impact from dumped steel imports, Ohio steel producers plan to further increase their competitiveness by investing in excess of $538 million in capital improvements across the Buckeye State during 1999. This is an increase of about $100 million over 1998, based on preliminary year-end figures.

The Ohio Steel Council reported today that the figures represent the combined investment spending by the major steelmakers in Ohio.

"In spite of the threat posed by unfairly traded steel imports, Ohio steel producers are planning to go ahead with next year’s schedule for heavy capital improvements," said George Manos, co-chairman of the Council and vice president of business processes at USS/KOBE Steel Co. in Lorain. "By continuing to invest heavily in our facilities, we absolutely are taking steps to remain competitive in the global marketplace and enhance job stability for Ohio steelworkers."

"While continuing to pressure Washington on the imports issue, we are trying to remain optimistic about our prospects for the coming year. These investment projections for 1999 are based on the expectation that the unfair trade situation can be righted expeditiously," he added.

The 1999 figures represent several major projects that will begin or are continuing in 1999:

- CSC Ltd.’s $100 million modernization in Warren, which includes installation of ultra-high-power melting, continuous casting and other new technologies.

- North Star Steel Ohio’s $38 million in improvements to the Youngstown facility, including installation of a new electric arc furnace, a ladle metallurgy furnace and an industrial gases generating plant. These will increase capacity by 35 percent, reduce costs and improve product quality and diversity.

The 1999 projections follow several years of heavy investment in the Buckeye State. Since 1993, Ohio steel producers have spent more than $3.3 billion on capital investments statewide.

The Ohio Steel Council, appointed in 1991 by Governor 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., CSC Ltd., LTV Steel Co., North Star Steel Ohio, Pittsburgh Logistics Systems, Inc., Republic Engineered Steels, Inc., The Timken Company, USS/KOBE Steel Co., Washington Steel, 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.

OHIO STEEL CAPITAL SPENDING TOTALS

Source: Ohio Steel Council