May 10, 2006 — WCI Steel, Inc. is investing $36.7 million in a new walking beam slab reheat furnace at its hot strip mill that will increase quality and productivity while reducing operating, maintenance and energy costs.

The new walking beam furnace will replace three pusher-type furnaces now in operation at the strip mill. During construction, the strip mill will operate with two of its three existing furnaces.

WCI President Patrick G. Tatom said the new furnace will employ state-of-the-art combustion control technology that will reduce electricity usage by 25% per ton produced. Tatom said the new technology will also help to reduce overall fuel consumption by 37.5% per ton produced.

"The walking beam furnace is the centerpiece of our strategic plan to increase margins, grow our custom product business and enhance our operational efficiency," Tatom said. "Operating costs will be reduced through improved energy efficiency, better material yields and lower maintenance costs while our product offerings will increase due to the furnace's expanded capabilities."

David A. Howard, WCI Vice President—Commercial, said the walking beam furnace will allow WCI to roll longer slabs (up to 33.5 feet from the current 28 feet) and meet market demand for 1,000 PIW coil sizes (compared with the existing 850 PIW maximum). In addition, the furnace will enhance quality by providing consistent, uniformly heated slabs for rolling and reducing surface defects such as scale and skid tears.

"The walking beam furnace is a customer-driven initiative," Howard said. "Once in operation, we will provide a higher quality product and have the opportunity to grow our custom hot-rolled business. At the same time, we will be able to address our customers' general need for larger coil size by being able to provide 1,000 PIW coils."

Construction on the new reheat furnace is expected to begin immediately, with project completion set for January 2008. As part of the project scope, the existing heat retention boxes will be expanded to accept larger steel slabs. The existing shipping cranes will be upgraded, as will the shipping floor online coil scales.

WCI is an integrated steelmaker producing more than 185 grades of custom and commodity flat-rolled steel at its Warren, Ohio, facility. WCI products are used by steel service centers, convertors and the automotive and construction markets. The company has nearly 1,600 employees.