Ohio Steel Industry Advisory Council
Spring 1996
Leglislative
Lookout
New member
Quarterly report text
On the Steel Front
Steel at Work
Steel Front sidebars
Appliance reycling
Steel commission education Ohio
Steel Producers Greet
Electric Utility Competition Initiative The Ohio
Steel Commission characterized a new Ohio House bill to encourage competition
among electric utilities as "a critical step in preserving Ohio's competitiveness." H.B.
653, introduced in March by State Rep. Ron Amstutz, R-Wooster, is designed
to provide customer choice. Hearings began in April and are expected to
con-tinue this year. The Commission,
a 16-member group of steel, labor, education and government officials,
has been a top advocate of competition among utility companies since it
was formed in 1991. Steel producers represent the single largest user
of electricity in the state. "Ohio
is on the threshold of becoming a leader in competitive sourcing of energy,"
said Jay Parr, chairman of the Commission's energy/environment committee
and general manager at Armco Inc.'s operations in Coshocton. "Ohio needs
competition among electric utilities to preserve its own competitiveness
and that of the companies that operate here. "We need to be able to choose
electricity suppliers based on quality, price and service, just as our
customers shop for steel." The Commission's
nine member companies, who account for more than 90 percent of Ohio's
steel production, purchased more than $220 million in electricity last
year. The bill
also received strong support from the Industrial Energy Users-Ohio, a
coalition of 27 companies dedicated to competitive pricing for all forms
of energy in Ohio. Many Steel Commission member companies also belong
to the IEU.
Highlights of Rep. Amstutz's Bill
- Establish a state
policy to ensure universal availability of adequate, reliable and reasonably
priced electricity; ensure that all customers have comparable access
to alternative suppliers of electricity; and facilitate Ohio's effort
to compete in the global economy.
- Permit all customers
to select suppliers effective January 1, 1998.
- Eliminate government-controlled
price regulation of electricity generation functions in favor of market-based
regulation, coupled with the clear right of customers to obtain the
services required to buy power from the supplier of their choice.
[back to top]
Commission
Welcomes New Member,
First Associate Member Ohio
Gov. George V. Voinovich has appointed Edward R. Caine, newly elected
president and chief executive officer at WCI Steel, Inc., to the Ohio
Steel Commission. Meanwhile,
Edward V. Bull, general manager of Lukens Inc.'s Massillon operations,
has been appointed the Commission's first associate member. Caine,
who has more than 35 years of steel industry experience, relocated to
Ohio in April to assume the WCI post. He had most recently been general
manager of U.S. Steel Corp.'s Fairfield, Alabama Works for five years.
Prior to that, he was general manager of quality assurance and customer
technical service for U.S. Steel. WCI,
an integrated flat-rolled steel producer with 2,300 employees, has been
a member company of the Steel Commission since its establishment in 1991. Bull
has been with Lukens for two years and its top official in Massillon since
November 1995. Prior to joining Lukens, a steel producer based in Coatesville,
Pa., Bull worked for 29 years with General Electric Co. "Since
we have plans to expand in Ohio, we're eager to work with steel, labor,
government and education leaders to enhance the competitiveness of the
Buckeye State," Bull said. "We're pleased to be part of the partnership
the Steel Commission is developing in Ohio." Lukens'
Massillon plant, which employs about 250 people, supplies cold-rolled
stainless steel sheet. The plant is nearing the completion of a $76 million
capital improvement project that includes a new steel plate line.
[back to top] OHIO
STEEL DATA REPORT:
First Quarter 1996 Item Quarter
Ended March 31 1996
1995 % chg Steel
Production (tons) 5,256,707 4,575,928 15 Shipments
(tons) 3,747,954 3,790,305 -1 Exports
(tons) 42,565 63,563 -33 Payroll
$397,326,301 $398,986,015 -0.4 Average
Employment 27,998 29,190 -4 Capital
Investment Spending $76,890,575 $180,446,183 -57 State
and Local Taxes $22,773,264 $26,880,009 -15 Healthcare
Spending $66,222,080 $70,223,584 -6
[back to top] Steelmakers,
Workers Team Up on
Training to Maximize Value of New Technology Hundreds
of Ohio steelworkers are keeping pace with advancements in steel-production
technologies by participating in continued education and specialized training. This
emerging trend is gaining industrywide recognition and is evident in the
success of such career development programs as the Institute for Career
Development (ICD). ICD is
a national program administered by the United Steelworkers of America
and 13 U.S. steel companies to support the education, training and personal
development of workers. Along with the union, seven Ohio Steel Commission
companies participate, including AK Steel Corp., Armco Inc., LTV Steel
Co., Republic Engineered Steels, Inc., USS/Kobe Steel Co., Wheeling-Pittsburgh
Steel Corp. and WCI Steel, Inc. In addition
to ICD, Ohio steel producers are investing in continued training of their
workforces to enhance their competitiveness and adopt new technology. "With
the way the business is going, it's necessary to have people with multicraft
training," said Gary Schultise, manager of training and development for
Wheeling-Pittsburgh Steel. "Because resources are shrinking, workers need
to have a wide range of skills to be able to work in various areas." The ICD,
which operates 55 learning sites, offers training to workers on a voluntary
basis. Since its inception in 1992, the program has increased enrollment
five-fold - to approximately 26,000 participants nationwide. "The
demands of new technology and new work practices in a global market require
a broader, stronger fundamental base of improved educational skills,"
said Jim Murry, ICD executive director. "The new steelworker is highly
motivated to meet and overcome these challenges. "By improving
math and communication skills, steelworkers can absorb more technical
training and secure better career opportunities, while giving their company
a competitive edge in the marketplace." Part
of the ICD's mission is to develop customized classes associated with
the technologies found in the most modern steelmaking facilities. Workers
are taking greater responsibility for the future of the industry by participating
in and contributing to the development of the classes. Training
programs represent a joint effort between steel producers and workers
to enhance the quality of steel produced in Ohio, the nation's second-leading
steel-producing state. Much
of the training is associated with multimillion-dollar investments in
new equipment. Wheeling-Pittsburgh, for example, is providing training
to ensure that employees of its new $80 million tin mill in Yorkville
are proficient in the technology to be used there. Republic
provided specialized training in Europe for workers who now operate its
new $165 million CAST-ROLL facility in Canton. The plant employs 125 people. Larry
Roberts, new work system coordinator at CAST-ROLL, said workers learned
new skills ranging from operation of an extensive computer system to preventive
maintenance of equipment. "The
employee not only becomes more proficient, but also becomes a more valuable
resource to the company," Roberts said.
[back to top] Ohio
Steel Bar Producers Join
Efforts to Develop Lightweight Super Car Some
Ohio steelmakers are teaming up with the American Iron and Steel Institute
to advance the use of steel bar in the Super Car, a concept vehicle that
is being developed by an industry-government consortium. Representatives
of Republic Engineered Steels, Inc., USS/KOBE Steel Co. and The Timken
Co. are among six steel companies that participate in the AISI's Bar Applications
Group, which promotes the competitiveness of steel bar for automotive
and other original equipment applications. Pete Jarocewicz, product manager
at Republic, chairs the group. Representatives
of the AISI and the group met in April at a workshop to discuss ways that
steel bar can be included in the Super Car. The project, initiated in
1993 as the Partnership for a New Generation of Vehicles, is a joint effort
of the federal government, private industry, universities and steel and
automotive manufacturers to develop a car that will obtain 80 miles to
the gallon. The goal is to develop the mid-size vehicle without any increase
in costs. Plans
call for a concept car by 1997 and production prototype by 2004. One way
to achieve the higher fuel standard is to lighten the weight of cars.
The Bar Applications Group's mission is to at least maintain current production
costs and pare vehicle poundage. "The
workshop was a brainstorming session to discuss how lighter-weight steel
bar can be developed and used in chassis and underbody components," said
Thomas Mackie, AISI project manager. "The Bar Applications Group has a
lot of ideas and is working on new processes and mediums by which steel
bar producers can help meet the goals established for the Super Car." Steel
bar producers believe the weight of axles, control arms, gears and other
components can be lightened by 20 to 30 percent. Jarocewicz said the lighter
weight can be achieved through the use of different steel grades and forging
techniques that minimize surface defects and imperfections, which will
enable car makers to use different designs and smaller parts without sacrificing
strength or quality. The committee
also is seeking to improve the machinability of the bar products, which
ultimately can reduce the cost of making steel parts for the automotive
industry. Steel
bar presently is used in connecting rods, crankshafts, gears, steering
linkages and knuckles and axle shafts.
[back to top] Steel
Front Sidebars The Buckeye
State continued its strong hold as the second-leading steel-producing
state, supplying 16 percent of the nation's raw steel last year. The American
Iron and Steel Institute reports that Ohio produced 16.4 million tons
of raw steel in 1995, a slight drop from the 16.6 million tons produced
in 1994, but well ahead of 1993 production. Indiana held the top 1995
position at 22.8 million tons. The Timken
Co. in Canton has agreed to buy the Youngstown-based Ohio Alloy Steels,
Inc., which employs about 70 people and has annual sales of nearly $30
million. The transaction will establish Ohio Alloy as part of Latrobe
Steel Co., a Timken subsidiary. USS/KOBE
Steel Co. in Lorain announced a program to market pig iron, with an emphasis
on penetrating the foundry markets. A new $3.5 million machine will enhance
production of high-silicon, basic pig iron in excess of what the bar maker
needs for its own production.
[back to top] Appliance
Recycling Deemed Success for
Steel Industry, State and Scrap Dealers An increase
in participation in the second annual Ohio Appliance Recycling Roundup
was expected to bolster the number of appliances collected for steel recycling
efforts in the Buckeye State. More
than 35 counties and solid waste districts took part in the month-long
campaign in April to encourage recycling of steel appliances. In 1995,
eight counties joined the effort. The Ohio
Department of Natural Resources, the Steel Recycling Institute and the
Institute of Scrap Recycling Industries worked with counties in planning
special activities to spur collection of major appliances, which are made
up of about 75 percent steel. "We're
continuing to get more statewide interest in the program," said Bill Heenan,
president of the Steel Recycling Institute. "The significant increase
in participation not only is a sign of the program's success, but it also
sends a clear message that the Buckeye State is serious about recycling
steel." Heenan
said the Department of Natural Resources was instrumental in increasing
participation by providing grants to solid waste districts conducting
events. The collected
items will enter the scrap recovery network, where their steel components
will be separated and shipped back to the Ohio steel industry for re-use.
Appliance recycling reduces the volume of waste dumped in landfills and
provides the steel industry with a good source of quality scrap.
[back to top] Steel
Commission Plans More
Active Role with Education The Ohio
Steel Commission is seeking to take a more active role in education, working
to boost the number of its members who are participating in the state's
Tech-Prep program. Tech-Prep
prepares Ohio students for the workforce through vocational training and
curricula that emphasize technology. Some
steel producers already are participating in the program, but the Commission's
education committee is encouraging more companies to get involved and
is interested in having the entire Commission take part in the program. Gary
Melampy, chairman of the edu-cation committee and vice president of employee
relations for AK Steel Corp. in Middletown, said the Tech-Prep program
could benefit steel producers because it prepares students for the technological
workforce. "Our
goal is to encourage students to get the proper technical training to
make them more employable,'' Melampy said. "If we're to preserve our leadership
in a global market, we'll need well-trained employees." To involve
business and labor in the development of school curricula, Ohio education
officials have broken the state down into labor markets and established
a consortium for each one. Each consortium includes colleges and universities,
secondary school districts and business and labor representatives. Business
and labor representatives help identify skills that are needed for technical
jobs and recommend curricula to ensure the students learn those skills.
The Tech-Prep program is offered in high schools and often continues into
post-secondary schools, where students obtain either associate degrees
or two-year post-secondary certificates. Melampy
said the education committee is encouraging individual Commission members
to join the consortium within their respective communities. The Timken
Co., Republic Engineered Steels, Inc., the United Steelworkers of America,
Armco Inc., Youngstown State University and The Ohio State University
already belong to or participate in consortia.
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