TAFT APPLAUDS DECISION TO HELP WHEELING-PITTSBURGH STEEL
Reinforces Governor's Commitment to Helping Ohio's Steel Industry
COLUMBUS (December 9, 2002) - Governor Bob Taft today announced that the Development Finance Advisory Council has recommended a $12 million loan for Wheeling-Pittsburgh Steel Corporation to purchase machinery and equipment. The loan is subject to the approval of the State Controlling Board.
"I'm pleased by the action taken by the Development Finance Advisory Council. It's another important step toward ensuring the future viability of Wheeling-Pittsburgh Steel," Taft said. "Supporting this project reflects our strong commitment to Ohio's steel workers and their families."
As part of a $109 million investment project, Wheeling-Pittsburgh Steel plans to purchase an electric arc furnace (EAF) that will result in the permanent idling of one of two existing blast furnaces and three small coke batteries. With the new EAF, half of Wheeling-Pittsburgh's liquid steel will be produced from recycled scrap and alternative iron sources. It is estimated that the new EAF will provide the company with significant cost savings, improving its competitive position in the steel industry.
Wheeling-Pittsburgh Steel is currently in Chapter 11 bankruptcy and working to restructure its business. It is the eighth largest domestic steel producer, employing approximately 2,500 workers at facilities in Jefferson and Belmont counties.
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Contact: Maria Smith or Gail Crawley, ODOD, at (614) 466-2609; or
Joe Andrews, Governor's Office, at (614) 644-0957.