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STAINLESS IN THE 90S -- A BRIGHT FUTURE

 STAINLESS IN THE 90S -- A BRIGHT FUTURE
 PARIS, Sept. 14 /PRNewswire/ -- "A bright, promising future for the


stainless steel industry should be ahead in the 90s," Robert P. Bozzone, president and chief executive officer of Allegheny Ludlum Corporation (NYSE: ALS) said today.
 Speaking before more than 200 participants in the 5th International Stainless Steel Conference in Paris, he cited the industry's outstanding product capabilities, new market applications, new and advanced technology, greater capacity, tighter cost control and strong growth opportunities.
 In his remarks, Bozzone noted that the industry's growth will continue to depend on technological innovation. He urged the industry to strengthen its commitment to technology and never relax, reporting that Allegheny Ludlum annually invests more than 3 percent of revenues in this area of its business.
 "Our industry has done a good job of restraining costs and making stainless steel a better buy, a better value than ever," Bozzone said. He cited many of the outstanding capabilities of stainless steels, including durability, resistance to corrosion, heat and wear, attractive appearance, fire resistance, hygienic surfaces, low maintenance, and better full life cycle costs. "But," he added, "sometimes overlooked over the past quarter century, stainless steel has become more price competitive."
 Noting that stainless steel markets have been growing globally at an annual rate of 4 percent to 6 percent, Bozzone said, "We should be able to sustain this healthy rate well into the next century. My vision is that with the total commitment of our industry, we should surpass that rate."
 He said that opportunities abound in the data for consumption of stainless steel in various nations. The American industry's goal is to encourage consumers to double stainless steel consumption from about 14 to 28 pounds per capita, a level approaching that of Japan. He hailed the market development efforts of the Nickel Development Institute, the International Chromium Development Association and other groups that have most often had a national rather than a global focus.
 "I believe the stainless steel industry, to the extent that it is legally appropriate, should organize and implement a global market development effort to seek new growth opportunities. We should capitalize on successes in many individual nations by taking programs now underway to the rest of the world. By better servicing the world's markets, all of us can be beneficiaries," he stated.
 According to Bozzone, the indicated sizable increase in stainless steel capacity in upcoming years makes it important to begin further market development to assure rapidly growing end use markets.
 He noted several roadblocks that must be addressed in enhancing market growth for stainless steel through effective efforts among all global market development agencies. "Unreasonable and volatile raw material costs work in the opposite direction of market growth. Important to our bright future is the continuing availability of raw materials and scrap at fair and reasonable prices.
 "Also," the specialty steel executive said, "the industry must have the capability to generate the capital needed to finance both new technological developments and capacity. I feel very strong about the need for greater future capital availability. I feel just as strongly that government support is the wrong way to secure capital or provide competitive advantage. I am encouraged that more parts of the world are adopting market-driven free enterprise economies and are declaring that profit is a legitimate and necessary ingredient in developing capital requirements and future growth."
 Among other potential roadblocks to a bright future, Bozzone cited friction in international trade. "I am pleased that our government and others are now exploring the reopening of the MSA talks in Geneva."
 Finally, Bozzone noted another serious area of concern is environmental regulations. He urged that the industry insist that government regulations be formulated from carefully substantiated data. "With facts, we can all join in seeking mutually shared goals for a healthy environment in which all of us must live."
 Calling for greater efforts to enhance market growth for stainless steel through all global development agencies, Bozzone said that while areas identified could have a negative effect, he forsees nothing that cannot be managed with focused attention and hard work. "I am convinced this is the sure path to a bright future for stainless steel in the 90s."
 United States based Allegheny Ludlum is a leading American producer of a wide range of specialty materials, including stainless steel, electrical steels and high technology alloys. The company reported 1991 sales of $1 billion. For the first six months of 1992, Allegheny Ludlum reported sales of $525.1 million and earnings of $26.7 million or $.81 per share. The company employs over 5,400. Allegheny Ludlum is listed on the New York Stock Exchange (symbol ALS).
 -0- 9/14/92
 /CONTACT: Bert Delano, 33-1-4505-1363, or Dan Greenfield, 412-394-3004, both of Allegheny Ludlum/
 (ALS) CO: Allegheny Ludlum Corporation ST: IN: MNG SU:


CD-CC -- PG006 -- 9092 09/14/92 11:16 EDT
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Date:Sep 14, 1992
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