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CITISTEEL USA TO PRODUCE ONE-MILLIONTH TON OF CARBON STEEL SLAB

 CLAYMONT, Del., Aug. 2 /PRNewswire/ -- CitiSteel USA expects to produce its one millionth ton of carbon steel slab Tuesday, Aug. 3.
 Compared to the giant steel mills of the industrialized world, a million tons of steel is relatively small. But, for the mill in Claymont, whose new owners pulled it out of bankruptcy, the manufacture of 1 million tons in four years borders on the miraculous. The CitiSteel sales projection for 1993 is $100 million.
 The 10-inch thick carbon steel slabs each measure 80 inches wide by 30 feet in length. From these slabs, CitiSteel USA fabricates precision steel plates for heavy industry. To give some idea of what a million tons of slab represents in terms of plate volume, a two-inch thick, four-feet-wide steel path could be laid from Claymont to Seattle.
 Jay Smith, CitiSteel USA's production chief, exemplifies the pride of accomplishment. "We took a mill that looked like a scene from World War II, and turned it into a productive plant in just 8 months. Our workforce has progressed so well that we plan to turn out our second millionth ton of slab in the next three years, rather than the original projection of four years."
 The new owners of CitiSteel USA revitalized the bankrupt Phoenix Steel organization with a large capital improvement program, plus assuming responsibility for industrial bonds of the shut down mill -- totaling multimillions of dollars.
 President and Chief Executive Officer Zengxin Mi outlined CitiSteel USA's contribution to the community:
 "Aside from providing more than 300 jobs, the mill contributed $814,000 in state and local tax revenues. And when you consider the increased business to area suppliers -- for example, we are the largest user of electrical energy in Delaware -- the little mill on the Delaware River has become a big financial asset to the state and its citizens."
 And what about the future of CitiSteel USA?
 "Starting from zero production just four years ago, we have gained more than 6 percent share of the national steel plate market," he reported. "And at present, we are ahead of schedule. The mill could be producing at an annual rate of 300,000 tons by 1994.
 "In addition, we are working on several options for increasing our market share of steel plate by further upgrading our technology; by introducing new steel plate products; and by stepping up our marketing program."
 And the probability for achieving all those objectives?
 "The odds for success on any or all of those options are in our favor because of our employees' resources," Mi said. "The morale and dedication of our people are excellent thanks to a climate that is conducive to job growth and security. Now that the mill is up and running so well, our employees have acquired a sense of success and confidence."
 -0- 8/2/93
 /CONTACT: Ed Golin of CitiSteel USA, 302-984-2980/


CO: CitiSteel USA ST: Delaware IN: MNG SU:

MJ-JM -- PH023 -- 8455 08/02/93 14:55 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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