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Rouge Industries and Bing Blanking Acquire the Assets of Freedland Industries

1 April 1998

Rouge Industries and Bing Blanking Acquire the Assets of Freedland Industries

    DEARBORN, Mich., April 1 -- Rouge Industries, Inc.
and Bing Steel Management Inc. announced today the purchase of the
assets of Freedland Industries Corp., a Dearborn-based blanking and
rollforming operation, for $6.35 million.  The assets will be dedicated to
Bing Blanking, L.L.C., a recently formed joint venture company between Bing
Steel Management and QS Steel Inc., a wholly-owned subsidiary of Rouge
Industries.
    Bing Blanking will supply blanked and rollformed frame parts to Ford Motor
Company for its rear wheel drive vehicles including the Lincoln Town Car, Ford
Crown Victoria and Mercury Grand Marquis.  It will also produce and market
first operation steel bearings for the Big Three and tier one suppliers to the
automotive industry.
    Dave Bing, chairman of the board of Bing Steel Management stated, "The
acquisition will permit Bing Blanking's immediate entry in this new business
segment and will further permit our expansion of value-added processing
capability for our valued automotive customers."
    According to Carl Valdiserri, chairman and chief executive officer of
Rouge Industries, "We look forward to our expanded relationship with Dave Bing
and his associates.  This acquisition will provide an excellent location for
Bing Blanking, and will also provide Rouge with another downstream value-added
processing outlet for our core steel products.  The purchase is also good news
for the City of Dearborn, in that the new ownership provides the City with
another expanding business opportunity."
    David Olson, Bing Blanking president said, "We are very happy that the
acquisition is behind us and now we can focus our entire energies on building
Bing Blanking into a premier supplier to the automotive industry."
    Rouge Industries, Inc. is the parent holding company of Rouge Steel
Company whose integrated steel making facilities and corporate offices are
located in Dearborn, Michigan.  The Company primarily serves the automotive,
converter and service center markets.
    Bing Steel Management is a Detroit-based steel processor and supplier to
the automotive industry.

SOURCE  Rouge Industries