Aug. 11, 2006 — Kenwal Steel Corp. has announced that it will build a state-of-the-art processing and distribution facility next to the SeverCorr steel mill now under construction near Columbus, Miss.

The 210,000-square-foot $15-million facility, Kenwal's first in the South, will be located in an Industrial Park as part of a 1400-acre mega-site set aside for SeverCorr and its business partners.

Kenwal's service capabilities will include:

• A light gauge slitting system with surface critical technology that will focus on cold rolled, and coated materials from .010 to .060 thick in widths up to 72 inches wide.
• A heavier gauge system tailored to run unexposed materials like hot rolled black & pickled & oiled from 0.055 to 0.375 thick in widths up to 72 inches.
• An automated packaging line will complement the slitters to accommodate specific customer needs on all slit coil requirements.
• Rail and truck shipping and receiving docks will be supported by 44-ton cranes to handle SeverCorr's large coil capability.

"We are honored to have been selected as a supplier partner with the nation's newest steelmaker," said Kenwal Chairman and CEO Kenneth Eisenberg. "SeverCorr's commitment to building a tightly-integrated working relationship with us will help provide a new level of service to our steel customers. We are proud to be on board."

"When we decided to build a next-generation steel mill, we also decided to create next-generation relationships with the downstream channel," said Michael Wagner, Chief Commercial Officer of SeverCorr. "We selected a site with room for our partners to grow with us, and are pleased to welcome Kenwal as one of our first neighbors."

Kenwal expects to break ground in October followed by a late spring 2007 launch. The new enterprise is expected to generate as many as 80 new full-time jobs at peak employment.

Kenwal Steel Corp., based in Dearborn, Mich., will celebrate its 60th year in business in 2007, and remains dedicated to a tradition of excellence with a history of innovation. Today, the Kenwal Steel Group is a collection of companies providing best-in-class flat rolled steel products and services from processing facilities in the Midwest and Canada. The company remains committed to growth as it reaches out to meet the ever-changing needs of an expanding customer base.

SeverCorr was formed in 2003 to design, engineer, build and operate a state-of-the-art steel facility to service growing manufacturing opportunities in the Southern U.S. In October of 2005, SeverCorr broke ground on a next-generation steel mill near Columbus, Miss. When complete in 2007, the plant will produce 1.5 million tons of high-quality steels a year for use in the automotive, building, agricultural, pipe & tube and appliance industries. Future expansion includes a second production line that will double capacity, as well as space for production partners and manufacturers on the company's 1400-acre site.