International Steel Group Inc. has unveiled a plan to expand operations at its Cleveland Works.

The project, recently approved by the company’s Board of Directors, will allow the company to add automotive-quality hot dip galvanizing capacity by converting its currently idled continuous anneal line. The new line is expected to begin production by the fourth quarter of 2005 with an operating capacity of about 500,000 tons per year.

The new galvanizing line will support ISG's automotive market growth strategy by providing high-quality, anti-corrosive galvanized sheet steel tailored to automotive applications. The line will complement ISG's existing automotive coated-product capabilities, enhance its operational flexibility and expand its product offerings.

Conversion of the idled continuous anneal line offers a lower-cost alternative to installation of a completely new hot dip galvanizing line. The project, which will utilize most of the existing equipment, is expected to cost approximately $40 million.

"This investment represents a significant step in the growth of our operations at the Cleveland Works," said Rodney B. Mott, ISG President and CEO. "It will strengthen our company by improving our capability to serve customer needs. It also shows that we have the right people, facilities and products to do the job."

An additional benefit is that many of the same workers who idled the previous line for former owner (LTV Steel Corp.) will now help to restart the new line. The line will provide at least 50 jobs.

"ISG continues to demonstrate its commitment to employees and the community by creating new jobs, taking advantage of market opportunities and operating its facilities profitably," said Mark Granakis, President of United Steelworkers of America (USW) Local 979. "The USW is proud to play an important role in providing the expertise to get this new line up and running."

William A. Brake, ISG Vice President and General Manager, said, "This project is located in a portion of the Cleveland Works that is in the Village of Cuyahoga Heights. The Village of Cuyahoga Heights and the Cuyahoga Heights Schools have expressed their support for the project and we have worked closely with them to structure a package of mutually beneficial economic incentives. I want to express our appreciation for their support, which is an important factor in moving this project to reality."

International Steel Group Inc. is one of the largest steel producers in North America. It produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, wire rod, rail products and semi-finished shapes to serve the automotive, construction, pipe and tube, appliance, container and machinery markets.