Republic To Invest $12.5 Million at Canton Operation

Investment to enable company to re-enter bottom-poured ingot market.

FAIRLAWN, Ohio (Sept. 6, 2007) -- Republic Engineered Products, Inc., North America’s largest producer of special bar quality (SBQ) steel, today announced it will invest $12.5 million at its Canton operation to install new, state-of-the-art equipment necessary for producing bottom-poured ingots.

Republic expects to produce up to 200,000 tons of bottom-poured ingots annually for both domestic and export customers in the Open Die Forging, Seamless Rolled Ring and Electrode markets. The initial ingot sizes will be 24”, 29” and 37” rounds, with future plans to expand to 20” through 72”, weighing up to 70,000 pounds.

Steel for the new bottom-poured ingot operation will be produced in 220-ton heats utilizing the Canton facility’s upgraded electric arc furnace melt shop, and new ladle refining and vacuum degassing equipment, which were all put into service in 2006. The new bottom-pour equipment is expected to be operational in the third quarter of 2008.

Republic had previously been a major supplier of bottom-poured ingots until 2002.

“This project demonstrates our commitment to pursuing an aggressive growth strategy and maximizing the utilization of our steelmaking capacity,” said Jaime Vigil, Republic’s president and CEO. “Our thorough examination of this market showed a definite need for another source for high quality ingots. Our intention is to couple our extensive steelmaking experience with our ingot-pouring technical expertise to become a significant producer in this market once again.”

This latest investment marks nearly $115 million in capital expenditures by Republic since July 2005 when the company was acquired by Industrias C.H., S.A. de C.V. (ICH), a rapidly growing steel producer and processor based in Mexico City. Republic is a subsidiary of Grupo Simec, Guadalajara, Mexico, of which ICH is the majority owner.

“Republic’s goal is to maintain our position as the undisputed leader in our industry,” Vigil said. “We intend to continue to make the investments necessary to remain the supplier of choice in a very competitive marketplace.”

Republic Engineered Products, Inc., is North America’s leading supplier of special bar quality (SBQ) steel, a highly engineered product used in axles, drive trains, suspensions and other critical components of automobiles, off-highway vehicles and industrial equipment. With headquarters in Fairlawn, Ohio, the company operates steelmaking centers in Canton and Lorain, Ohio, and value-added rolling and finishing facilities in Canton, Lorain and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ontario. Republic employs approximately 2,500 people.

Published on 2007-09-06

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