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Coke Shortage Forces Weirton Steel
to Curtail Operations

Jan. 12, 2004 — Weirton Steel Corp. reported it will temporarily curtail certain operations, which will lead to temporary layoffs. The company cited the global shortage of ironmaking coke as a key factor in the cut-backs.

Reductions will include certain finishing and rolling processes, but the number of affected employees has yet to be determined. The situation also could cause the company to temporarily idle one of its two blast furnaces.

“At this time, we cannot provide specifics on the number of layoffs or the degree of operating cutbacks. The well-publicized coke shortage fluctuates daily. However, as we move closer to mid-January, when we believe we'll feel the full effects of the shortage, we'll be able to make a more precise decision on operations and manpower," said D. Leonard Wise, Weirton Steel CEO.

"The coke issue has impacted several other domestic steel producers, including several that already have reduced their operations. Our employees and our customers should know that we're working diligently to minimize any negative effects on them."

U.S. Steel, which is Weirton Steel's primary coke supplier, was forced last month to reduce coke shipments following a fire at a West Virginia coal mine that has not yet resumed operations. The mine provided metallurgical coal to U.S. Steel's coke making plant in Clairton, Pa. The reduced coke production from U.S. Steel has aggravated an already worldwide shortage of coke.

"We have contacted coal companies and coke sources throughout the world to help us overcome our coke shortage. Our attempts will not end until the problem is solved," Wise explained.

Weirton Steel annually uses approximately 1.2 million tons of coke in its ironmaking operations.

Adding to the coke situation is China's increasing demand for the material to feed its massive steelmaking operations. According to a recent steel analyst report, China produced 129 million tonnes of steel in 2000. This year, the country is expected to produce 265 million tonnes. The report also stated that China is spending approximately $29 billion per year on steel industry expansion.

Weirton Steel is the fifth-largest U.S. integrated steel company and the nation's second largest producer of tin mill products. The company, which employs 3300, filed for bankruptcy protection on May 19, 2003.

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