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REPUBLIC TO ACQUIRE WESTERN STEEL

 MASSILLON, Ohio, May 11 /PRNewswire/ -- Republic Engineered Steels, Inc. today announced that it has agreed to purchase most of the assets o+ the Western Steel Group Inc. for $4.5 million. Western has cold finishing plants in Gary, Ind., and Elyria, Ohio.
 Republic will acquire the plant, equipment and real estate of the Gary facilities, as well as the equipment and spare parts from the Elyria facility. Additionally, it will purchase all patents and other intellectual property of Western. Over the next year, Republic has agreed to explore the possibility of leasing the Elyria plant for limited operations there.
 Russell W. Maier, president and chief executive officer of Republic, said, "This is a very significant day for Republic and its employee- owners. We have come through three years of severe economic difficulty -- our survival phase. This acquisition marks the beginning of Republic's growth phase and is one of several moves we will be making to insure our future financial success."
 Western Steel has been under the control of an Ohio State Receiver, appointed by the Lorain County Court of Common Pleas, since August of 1992. The Receiver has been charged with selling the assets of Western. Today, the Lorain County Court indicated it intends to enter a final order approving the sale of Western's assets to Republic. It is expected that Judge Edward M. Zaleski will enter such a final order by the end of May, after which the Receiver, Thomas A. St. Marie, will be authorized to conclude the sale to Republic.
 "The addition of the Gary Western facilities to Republic's cold finish business expands our market and quality capability in the small diameter bar steel sizes. We hope to start up that plant's operations by early July," said John E. Burnsworth, general manager of Republic's Cold Finished Division.
 According to Maier, the acquisition of the Western assets translates into direct economic and operating benefits to Republic. "It reduces costs, expands capability and the geographic location of the facilities fits squarely into the area of the country where the cold finished steel market is concentrated."
 Republic, which presently has cold finishing plants in Gary, as well as in Beaver Falls, Pa.; Massillon, Ohio, and Willimantic, Conn., is the nation's largest integrated producer of carbon and alloy cold finished bars. It is an employee-owned company of approximately 5,000 people which is also the leading domestic producer of high-quality bar and specialty steels designed to meet the world's most demanding applications. It is headquartered in Massillon and has other plants in Canton and Massillon, Ohio, and Chicago.
 -0- 5/11/93
 /CONTACT: Harold V. Kelly, vice president, law & public affairs, Republic Engineered Steels, 216-837-7045/


CO: Republic Engineered Steels, Inc.; Western Steel Group Inc. ST: Ohio, Indiana IN: MNG SU: TNM

KL -- CL016 -- 7014 05/11/93 11:37 EDT
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Publication:PR Newswire
Date:May 11, 1993
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