Ohio steelmakers lift investments

Tribune Chronicle
Despite lower shipments, the state’s steelmakers boosted long-term investments in the third quarter of 2006, the Ohio Steel Council reported Tuesday.

Steel companies boosted investment in equipment and technology by 65.3 percent from July through September over the year-ago period, the council said.

Companies spent $75.45 million to maintain their competitive positions in the global market, the council said.

For the first nine months of 2007, steelmakers spent $195.5 million, 4.05 percent more than in the same period the year before.

Warren’s WCI Steel Inc. has invested about $66 million in a baghouse system to improve pollution control, along with a walking-beam furnace that will boost efficiency and cut costs.

Jobs at state steel companies averaged 14,229 in the period, 3.8 percent over the prior year. Payroll increased 1.45 percent to $241.4 million. Payroll for the first nine months rose 0.7 percent to $241.4 million in the period.

Production totaled 3.5 million tons for the quarter, down 7.5 percent from the prior year. Shipments slipped 0.85 percent to 3.9 million tons.

Shipments during the quarter reached 11.5 million tons, down 5.5 percent from a year ago. Nine-month production totaled 10.7 million tons, off 7.6 percent from the year-ago period.

Roger Lindgren, president and chief executive officer of V&M Star in Youngstown and council co-chairman, said the industry continues to see the effects of slower growth in key markets, including vehicles, housing and their suppliers. He said steelmakers expect to see those markets improve this year.

The council’s report is compiled by Youngstown State University’s Center for Urban Studies.