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Friday, February 19, 2010

ArcelorMittal Steelton investing $54 Million to modernize rail mill

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ArcelorMittal Steelton said it has received approval for $54 million in capital funding that will significantly upgrade the rail production process with a new walking-beam reheat furnace that includes advanced energy and environmental technology.

"In what remains a very challenging time for our industry, support for this project represents a significant investment in the long-term sustainability of ArcelorMittal Steelton," said Dave Wirick, general manager, ArcelorMittal Steelton. "There is no doubt that the close partnership between management and the United Steelworkers, as well as the leadership and dedication of the Steelton workforce, contributed to our plant receiving the funding approval."

The reheat furnace and related equipment installation will be an important part of a strategic upgrade, improving the competitive position of Steelton while also making the facility more energy efficient. The Company's Group Management Board and Investment Allocation Committee recently reviewed and approved the investment

"Capital investment in equipment and technology is crucial to the long-term viability of the company and the job security of its workers. I praise the joint USW and management efforts that led to the facility securing the capital investment in Steelton, which will improve the facility's future prospects not only for members of the USW, but for all stakeholders who have an interest in the success of ArcelorMittal," said Leo W. Gerard, United Steelworkers, International President.

Complementing the long history of rail production in Steelton, Pa., since 1867, this investment reaffirms the company's commitment to its domestic Class 1 and passenger rail customers and underscores the importance of maintaining a focus on quality and productivity. This project will enhance Steelton's position to meet the needed improvements in rail infrastructure and will support the growth of high-speed passenger service in the U.S.

"In a time of such economic uncertainty, I am pleased to see such a strong investment in the Steelton facility to not only improve rail making operations for domestic rail customers, but to also increase energy efficiency, preserve jobs, and advance the competitive position of the industry in the region," said Congressman Tim Holden (D-17).

 "This capital investment demonstrates ArcelorMittal's commitment to providing sustainable jobs, improving energy efficiency and ensuring the competitiveness and viability of steelmaking in Steelton," said Pennsylvania Governor Rendell. "I commend the company for moving forward with this vital project and appreciate ArcelorMittal's continued work to strengthen the region and our great state."

The new furnace is projected for start-up in 2012.

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