(WARREN, OHIO) February 12, 2007 - WCI Steel, Inc. (OTC: WCIS.PK) announced today that it has entered into a long-term supply agreement with Sun Coke Company that will provide access to a competitive source of domestic coke.
The 15-year contract assures WCI Steel of approximately 40 percent of its coke supply requirements for its blast furnace operations starting in 2008.
WCI Steel Vice President of Business Development Thomas J. Gentile said that the agreement achieves the company's strategic objective of securing a long-term domestic supply of coke.
"We are pleased that this raw material sourcing issue has been resolved and firmly believe the new coke contract will strengthen our core operations," Gentile said.
Sun Coke, a wholly owned subsidiary of Sunoco, Inc. (NYSE: SUN), has announced plans to build a second coke manufacturing plant in Haverhill, Ohio, where WCI Steel's coke will be produced. Construction of the new plant is expected to begin later this quarter, with full production anticipated by late 2008.
About WCI Steel, Inc.
WCI Steel's strength is built on "Custom Steel. Custom Service. Creative Solutions." As a niche-oriented integrated producer of value-added, custom steel products, WCI Steel emphasizes customer and technical service. WCI Steel currently produces 185 grades of flat-rolled custom and commodity flat-rolled steel at its Warren, Ohio, facility, focusing on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers are steel converters, processors, service centers, construction product companies and, to a lesser extent, automobile manufacturers.
Forward-Looking Statements
Information contained in this release, other than historical information, should be considered "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. WCI Steel cautions that there are various important factors that could cause actual events to differ materially from those indicated in the forward-looking statements; accordingly, there can be no assurance that such indicated events will occur. Among such factors are: the timing and completion of the construction of the coke plant; the ongoing requirements by the company for coke, which depend on the company's operating rates; changes in, or the failure or inability to comply with, government regulation including, without limitation, environmental regulations; the outcome of legal matters and other risk factors. Except as required by law, WCI Steel does not assume any responsibility to update any forward-looking statements to reflect future developments or events.
WCI Steel, Inc. Contacts:
ANALYSTS: Cynthia B. Bezik, Vice President and CFO, 330-841-8301
MEDIA: Belinda Cavender, 330-841-8214
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