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AK Steel and Hylsamex Create 'Alliance for the Americas'

10 December 1998

AK Steel and Hylsamex Create 'Alliance for the Americas'

    MIDDLETOWN, Ohio, Dec. 10 -- AK Steel Corporation
and Mexican steel producer Hylsamex S.A. de C.V. (OTC: HLETY) have completed
definitive agreements which finalize product supply and marketing arrangements
first announced in October.  The agreements will enable the two premier
flat-rolled producers to supply one another with products outside their
respective capabilities.
    The agreements were finalized Wednesday in Monterrey, Mexico, headquarters
for Hylsamex.  Richard M. Wardrop, chairman and chief executive officer of AK
Steel and Alejandro M. Elizondo, president and chief executive officer of
Hylsamex signed the agreements.  The strategic alliance will link the products
and services of two Hylsamex divisions, Hylsa flat products and Galvak, its
pre-painted and galvanizing subsidiary, to serve customers in the U.S., Mexico
and Central and South America.
    "This agreement reflects the new market reality that we are facing in the
steel industry," said Mr. Elizondo.  "This is a step in the right direction,
because our customers' main concerns are for high quality products,
competitive prices and first class technical service.  They do not distinguish
geographical boundaries any more."
    "We have christened this the 'Alliance for the Americas,'" said Mr.
Wardrop.  "We believe that phrase succinctly describes the vitality created by
joining the forces of two of the foremost flat-rolled producers in North
America.  Our customers will be well served by this alliance."
    The alliance creates one of the most comprehensive product ranges in
flat-rolled steels.  AK Steel's recently opened Rockport, Indiana finishing
plant produces the widest carbon cold-rolled and galvanized/galvannealed
products available - 80" (2,032mm).  The plant is capable of producing
300- and 400-series stainless steels in widths up to 60" (1,524mm).
AK Steel also produces electrogalvanized, aluminized, terne-coated and
enameling steels.
    Hylsamex's Galvak division specializes in galvanized, galvannealed,
zinc/aluminum coated and pre-painted sheet and strip.  Galvak has a
comprehensive network of more than 20 warehouse distribution centers
throughout Mexico.  The Hylsa flat products division is a pioneer in the
development of thin (1.2mm to 1.5mm) and ultra-thin (1mm or less) hot-rolled
steel.
    Both Hyslamex and AK Steel serve a wide array of high value-added markets,
including automotive and appliance.  Both companies were among the first steel
producers to achieve international quality standard certifications.
    Hylsamex is Mexico's most modern steelmaker, and is a unit of Alfa Group
(Grupo Alfa), a diverse industrial concern.  In 1997, Hylsa's Flat Products
Division, based near Monterrey, shipped approximately 1.6 million tons of
finished products, and was recognized with QS-9000 certification, the first
Latin American steel company to receive the prestigious accreditation.
    Hyslamex's Galvak division in Monterrey produces galvanized, galvannealed
and pre-painted flat-rolled products for use in automotive, appliance,
construction and marketing markets.
    AK Steel produces carbon and stainless flat-rolled steel products for
automotive, appliance, manufacturing and other markets.  The company received
ISO 9002 certification and QS 9000 registration in 1996.  The company employs
5,800 in plants and offices in Middletown, Ohio, Ashland, Kentucky and
Rockport, Indiana.