Ohio Steel Industry Advisory Council
Summer 1997
On
the Steel Front
Steel Front Sidebars
Legislative Lookout
Merger Issues
Ohio Steel Producers Support Congressional Efforts
to Delay, Revise Air Standards
New Cleveland Browns Stadium Will Feature More Steel,
Less Concrete
Steel Industry Launches New Campaign Targeted to Consumers
Newsletter Receives High Marks in Readership Survey
Steel
Leaders, Decision-Makers
Shape Industry's Future at Ohio Meeting Steel industry leaders
and decision-makers came together recently in Cleveland to examine how
steelmakers can shape a strong future in North America and throughout
the world. Hundreds of steel
executives, suppliers and others attended the American Iron and Steel
Institute's general meeting, whose theme was "Steel 2010 - Shaping the
Future." The meeting - focusing
on issues, innovations and growth in the steel industry - featured the
presentation of an award to Federal Reserve Board Chairman Alan Greenspan
and the donation of a steel-framed house to a Cleveland family. AISI and
Habitat for Humanity erected the house. Harold V. Kelly, co-chairman
of the Ohio Steel Council and executive vice president at Republic Engineered
Steels, Inc. in Massillon, discussed the work of the Ohio Steel Council
at a meeting of AISI government relations specialists held during the
two-day session. Ohio's vital steelmaking
role and Cleveland's long history of steel production earned them the
opportunity to host the meeting. Ohio is the second-leading steel-producing
state. "The steel industry
has experienced a resurgence akin to the renaissance that has occurred
in Cleveland since the 1980s," Kelly said. "North American steel producers
are forward-thinking and are continually developing strategies to capitalize
on technological advancements to preserve their competitiveness in the
global market. Supportive attitudes from employees and public officials
are critical to this industry's long-term success." The importance of
steel to the economy was evident in comments by Greenspan, who noted he
stays abreast of steel scrap and production figures because they are "not
an insignificant determination" of future economic activity. "I'm pretty certain
I'm the only Fed chairman who has ever read The Making and Shaping of
Steel cover to cover," Greenspan joked. Steelmakers recycle
scrap metal - ranging from old cars to cans - to produce new steel. No
material on earth is as recyclable as steel. The AISI is an association
of North American companies engaged in the iron and steel industry, including
steelmakers, their suppliers and customers. The Ohio Steel Council, comprised
of steel, management, labor, education and government officials, is designed
to strengthen ties among the steel industry, Ohio's public policy makers
and its citizens.
[back
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Front Sidebars - J. Peter Kelly
has been elected president and chief operating officer of The LTV Corporation,
parent ofLTV Steel Co.in Cleveland. Kelly will continue to
oversee LTV Steel, where he has served as president and chief operating
officer since 1991.
- William Gahr, director
- workers' compensation atLTV Steel Co., received the Robert
M. Hisnay Memorial Award from the Ohio Self-Insurers Association for
his expertise and leadership in Ohio workers' compensation self-insurance.
- U.S. Steel Group
and Kobe Steel, Ltd. recently announced plans to build a hot-dip steel
galvanizing line at their PRO-TEC facility in Leipsic, Ohio. The same
two companies ownUSS/KOBE Steel Co. in Lorain.
[back
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WCI
Official Testifies Before State Lawmakers on
Steel Industry Concerns over Conrail Merger Higher shipping and
materials costs resulting from the sale of Conrail Inc. could put some
Ohio steel producers at a competitive disadvantage, a steel transportation
official told Ohio lawmakers recently. Lee Bloom, general
supervisor of traffic at WCI Steel, Inc. in Warren, said steel producers
depend on rail service to receive coal, iron ore, limestone and scrap,
as well as to ship finished products. "The merger raises
questions about competitive access, rates and safety - particularly if
there were to be a significant reduction in rail personnel, line sales
and the availability of rail cars," Bloom said at the hearing on the merger's
potential impact on Ohio consumers and businesses. CSX Corp. and Norfolk
Southern Corp. are seeking to buy Conrail. Steel companies are taking
a wait-and-see attitude toward the merger until they evaluate the rail
companies' plans for servicing steel plants. "We are not losing
sleep yet, but we are concerned," Bloom said. Bloom questioned whether
the sale would limit competition and increase raw material costs, ultimately
putting steelmakers that depend on iron ore and coal at a disadvantage. He also raised the
possibility of electric utilities being hit with higher transportation
costs for coal, which could result in their passing those increased costs
on to steelmakers. The Ohio Attorney
General has forwarded Ohio's concerns to the U.S. Surface Transportation
Board, which plans to make a decision on the merger within a year.
[back
to top] Merger
Issues Ohio steel producers
are concerned the merger could: - Increase coal and
iron ore costs
- Create competitive
disadvantages for some steel companies
- Alter rail car
distribution to steel mills
- Lead to congestion
and delays at rail yards
- Cause higher freight
rates
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Ohio
Steel Producers Support Congressional
Efforts to Delay, Revise Air Standards The Ohio Steel Council
has adopted a resolution strongly supporting federal initiatives in Congress
to revise or postpone new air-quality standards that would adversely affect
the industry and the Buckeye State's economy. The standards, approved
by President Clinton and adopted recently by the U.S. Environmental Protection
Agency, include first-time regulation of microscopic particulate matter
and impose tighter controls on ozone. But industry proponents
in the U.S. Senate and House of Representatives are building bipartisan
support for legislation (H.R. 1984 and S. 1084) to delay the new rules
and give lawmakers time to review the regulations. Other legislation
proposed in the Senate (S. 981) would ensure that the EPA first undertake
an economic analysis of any revisions to the standards before huge costs
and additional emission controls are imposed on industry. Citing a lack of scientific
or economic justification for the new rules, the Steel Council and other
employer groups contend the standards will adversely affect the economy
because of the high costs of compliance. "These rules place
an unnecessary economic burden on steel producers and other major industries
at a time when air quality is improving," said Harold V. Kelly, co-chairman
of the Council and executive vice president ofRepublic Engineered
Steels, Inc.in Massillon. "Clearly, these rules are unwarranted.
We need sound public policy in the environmental area to ensure that a
balance is struck between benefits and costs." The Council says the
standards are likely to force steel companies to add unneeded pollution
control and testing measures while discouraging industrial development
in many Ohio counties. Available scientific
data indicate that current ozone standards protect human health and fostered
a 12 percent reduction of ozone concentration in the U.S. between 1985
and 1994, according to the Steel Council.
[back
to top] New
Cleveland Browns Stadium
Will Feature More Steel, Less Concrete The new Cleveland
Browns football stadium will be built with more steel and less concrete
than first planned, in a move to save money and improve scheduling of
construction labor. Project and construction
managers recently changed the design and material for the stadium's mid-level
rakers, which are the support structures for the seats. Those rakers now
will be made of struc-tural steel, the same material that has been planned
for the upper-level rakers since the early stages of the project. "We believe there
is a cost advantage to using structural steel over cast-in-place concrete,"
said Mike Fratianni, project executive with Huber, Hunt and Nichols Inc.
of Indianapolis, the stadium construction manager. "Although we're still
calculating the amount of savings, we anticipate the reduction will be
significant." Fratianni said the
initial plan for the rakers called for workers to set forms, install rebar
and pour concrete on site, a time-consuming process that conceivably could
hold up other aspects of on-site construction, depending on weather conditions. But the steel rakers
will be fabricated off site and then shipped to the stadium, which should
speed up installation, cut down on labor costs and create more continuity
in the flow and scheduling of construction work. Diane Downing, project
manager for the city of Cleveland, said that additional steel will also
be used for framing and decking. "There will be quite a bit of steel on
the exterior of the stadium for decorative purposes as well," she said. The new stadium will
be the home of the Cleveland Browns. Excavation work is under way, and
the bids for the steel are to be opened in late September. The project
is expected to be completed July 31, 1999.
[back
to top] Steel
Industry Launches New
Campaign Targeted to Consumers The North American
steel industry recently launched a five-year advertising campaign to educate
consumers about the benefits of steel. "The New Steel. Feel
the Strength" was developed by TheSteelAlliance, a 94-member coalition
that includes North American steel producers, processors, customers, suppliers
and trade groups. The campaign marks
a departure from traditional steel marketing because it targets consumers
instead of steel producers' customers. The goal is to foster a new image
for the industry and establish steel as the material of choice in products
ranging from automobiles to houses to canned food. "We want to show consumers
that steel is and should be a part of their lives," said David Hoag, chief
executive officer ofLTV Steel Co.in Cleveland and chairman of
TheSteelAlliance. Mark Stephenson, executive
director of TheSteelAlliance, discussed the campaign at the September
meeting of the Ohio Steel Council. "This campaign represents
a new era for the steel industry," Stephenson said. "As the second-leading
steel-producing state, Ohio and its 30,000 steelworkers stand to benefit
from the results of this effort." The commercials highlight
the benefits of steel, from its strength to its recyclability. One commercial
shows a child in a safety seat as traffic rushes by, making the connection
between safety and steel side-impact beams in cars. Another ad, accompanied
by a "You Gotta Be" soundtrack by hit artist Des'ree, shows images not
typically associated with steel, such as a child resting against his pregnant
mother's stomach. The ad emphasizes the strength and security that consumers
typically associate with steel.
[back
to top] Newsletter
Receives High
Marks In Readership Survey Respondents to a recent
survey of Ohio Steel Report overwhelmingly indicated they are pleased
with the Ohio Steel Council's quarterly newsletter. Some 98 percent of
the 223 respondents stated they are satisfied with the publication, and
74 percent noted they share the publication with others. The survey gauged
the effectiveness of the newsletter and will guide the Council in determining
its future content. No major changes are planned. Respondents gave readability
the highest number of "excellent" responses. A large majority of respondents
also rated the publication high for usefulness, topics and timeliness. The Steel Council
thanks all those who took the time to respond to the survey.
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