OHIO STEEL PRODUCERS PLAN TO INVEST MORE THAN $500 MILLION IN 1997 CAPITAL IMPROVEMENTS

COLUMBUS, Ohio (December 30, 1996) –  Ohio steel producers plan to spend more than $500 million in capital improvements across the Buckeye State during 1997, the Ohio Steel Council reported today.

"Ohio continues to be faced with market conditions that require steelmakers to reinvest heavily in their facilities," said Harold V. Kelly, co-chairman of the 16-member Steel Council and executive vice president at Republic Engineered Steels, Inc., based in Massillon.

"As we enter 1997, we will continue to help Ohio leaders understand the enormous economic impact of our industry and urge that they advance public policies that encourage capital investment in new facilities."

The 1997 figures reflect several projects announced in recent months:

• - LTV Steel Co.’s new $20 million pickling line and $60 million worth of additional upgrades at its Cleveland Works. Plans include improvements to LTV’s cold-rolling facility, which will increase capacity and enhance performance; a new slitting and inspection line; and improvements to a coil-handling system.
  
  
• - CSC Ltd.’s comprehensive modernization in Warren, with projected spending of $75 million to $100 million over the next two years. Projects include a new steelmaking furnace, caster and ladle refining furnace.
  
  
• - The Timken Company’s $55 million rolling mill modernization in Canton. The project includes a range of improvements to the rolling mill and related equipment at Timken’s Harrison Plant.

The $500 million projected for 1997 follows 1996 expenditures of $718 million, which included year-long construction at North Star BHP Steel Co.’s new minimill in Delta, Ohio. Construction there is essentially completed.

Capital spending data for North Star, which is not a member of the Steel Council, were not available for 1997.

The Steel Council reported statewide capital spending at $890 million in 1995, $450 million in 1994 and $390 million in 1993.

The Ohio Steel Council (formerly known as the Ohio Steel Commission) is a public-private partnership 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., Republic Engineered Steels, Inc., The Timken Company, USS/KOBE Steel Company, WCI Steel, Inc., Wheeling-Pittsburgh Steel Corp., the United Steelworkers of America, the Ohio Legislature, the Ohio Department of Development, The Ohio State University, and Youngstown State University. Lukens Inc. is an associate member.