Rouge Steel Resumes Production in its Finishing Operations
12 February 1999
Rouge Steel Resumes Production in its Finishing OperationsDEARBORN, Mich., Feb. 12 -- Rouge Industries, Inc. reported today that Rouge Steel Company resumed limited Finishing Operations production at its Hot Strip Mill and Cold Mills on Thursday, February 11, 1999. Rouge Steel Company's steel making facilities in Dearborn, Michigan were idled on February 1, 1999 as a result of an explosion and fire at the Rouge Complex Powerhouse that interrupted the supply of electricity, process and heating steam, turbo air, mill water and other utilities to all Rouge Steel operations. The Company's Primary Operations, including its two Blast Furnaces, the Basic Oxygen Furnaces and Continuous Caster will remain idled pending the refurbishment and restart of the Powerhouse's turbo blowers. According to Bill Hornberger, vice president, Employee Relations and Public Affairs of the Company, "The first priority was to resume production in our Finishing Operations so we could ship available steel inventories to our customers. We are pleased to report that this has been accomplished. Now we are turning our full attention to our Primary Operations so we can resume steel making as quickly as possible. "The Company's steam powered turbo air equipment, which is integral to the operation of the blast furnaces, is housed in the Powerhouse and the damage to the utility systems supporting the turbo blowers was extensive. The Company has established an evaluation and repair schedule and believes that the turbo blowers will return to production by April 1, 1999," added Hornberger. Rouge Steel has purchased 430,000 tons of semi-finished steel to partially support its automotive order book as the mill returns to full production capability. Rouge Industries, Inc. is a producer of premium-quality flat rolled sheet steel and processed steel products and is the parent holding company of Rouge Steel Company. Rouge Industries principally serves the automotive, converter and service center markets. Safe Harbor Statement This press release contains forward-looking information about the Company. A number of factors could cause the Company's actual results to differ materially from those anticipated, including changes in the general economic climate, the supply of or demand for and the pricing of steel products in the Company's markets, potential environmental liabilities and higher than expected costs. For further information on these and other factors that could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission.