MAHONING VALLEY State releases funds to help WCI Steel

The company could receive an additional $279,060, state officials said.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- The state's release of as much as $500,000 to help WCI Steel Inc. buy equipment for its Warren complex could help the Mahoning Valley keep nearly 2,000 jobs, state officials say.
Without comment, the State Controlling Board approved the release of $220,940 to the struggling steelmaker Monday as part of its proposed $5.1 million equipment buy.
State officials pledged the company could receive an additional $279,060, provided that funding is available.
"The project will result in the retention of 1,800 jobs and is expected to create additional employment opportunities at the Warren complex," state development department officials wrote to board members in support of the funding.
If the entire state funding comes through, it would represent about 10 percent of the company's project.
State officials said the company has committed to funding the rest of the project.
WCI produces about 1.5 million tons of flat-rolled steel, with an emphasis on custom carbon, alloy and electrical steel products. WCI offers about 185 grades of high-quality steel used by steel service centers, electrical equipment manufacturers and the automotive and construction industries.
Purchases planned
Tim Roberts, a WCI spokesman, said some of the cash will be used for capital improvements, such as vessel replacements on the company's basic oxygen furnace, expansion of its hydrogen annealing facility, gauges for its finishing mills and a new turbo blower for the blast furnace.
According to state records, at least $2.27 million of the $5 million project is earmarked toward environmental protection, including the installation of a new solid-waste landfill, pond liners and an environmental management system.
Under terms of its consent agreement with the federal Environmental Protection Agency, WCI is prohibited from using the money to help pay for its dredging of a 1.3-mile section of the Mahoning River, Roberts added.
The $1 million dredging project begins this week.
Since 1988, WCI has invested more than $350 million in the Warren complex.
WCI president Edward R. Caine said, in a letter to Ohio DOD Director Bruce Johnson, that the company is gratified by the help. "We are delighted that the Department of Development can assist with our capital investment program and is willing to provide a grant of $500,000," he said.
Roberts said Gov. Bob Taft and the DOD have been "very supportive of the steel industry."
"This is proof that the state is committed to keeping the steel industry viable in Ohio," he said, noting that Ohio still ranks near the top in the nation for steel production and processing.
WCI was formed as an independent steel company in 1988, but the plant's steel-making heritage dates to 1912, when the Trumbull Steel Co. first began operating where WCI stands.
Funds to NEOUCOM
In other business, the board also approved the release of $110,250 to the Northeastern Ohio Universities College of Medicine to install new basketball, volleyball and tennis courts for use by students, faculty and staff members.
Akron-based Perrin Asphalt Co. submitted the lowest and best bid, state officials said, at $101,692. State and school officials added $8,558 to cover any contingencies.
There was no immediate word as to when the NEOUCOM project would begin.
Made up of six state lawmakers and a representative of the governor's office, the controlling board has the final say over some larger state spending projects.
CONTRIBUTOR: Vindicator Business Writer Cynthia Vinarsky.