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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp. today urged members of the U.S. House of Representatives to support a bill submitted by U.S. Rep. Alan Mollohan, D-W.Va., that calls for the extension of the Emergency Steel Loan Guarantee (ESLG) Program. Mollohan on July 23 offered H.R. 2881 which proposes extending the ESLG to Dec. 31, 2005. The program is set to expire at the end of this year. "We faxed a letter today to each House member explaining the importance of extending the program. This will be the first of several efforts by the company to convince the House to support Congressman Mollohan’s measure," said Mark Kaplan, Weirton Steel chief financial officer. Last month, Weirton Steel submitted an application to the ESLG Board seeking approval to participate in the program. A financial institution has committed a $175 million loan to the company subject to certain requirements, including the loan board’s approval for Weirton Steel to participate in the ESLG program. The letter sent by Kaplan to House members cites the need to provide U.S. steel companies with the opportunity to reorganize and/or consolidate in order to become more competitive. Kaplan wrote that the ESLG, coupled with the Bush administration’s current tariffs on certain steel imports, provides "an excellent opportunity" for the industry to improve its competitiveness. "We expect the loan board to act on our application this year. If it does not, obviously the extension would provide us the extra time we would need to complete the process. In addition, as the domestic steel industry works to improve its competitiveness, the extension would benefit other steel firms. We thank Congressman Mollohan for again helping our industry," Kaplan commented. The ESLG is frequently referred to as the "Byrd Bill," named after its creator, U.S. Sen. Robert C. Byrd, D-W.Va. Byrd crafted the measure to help the domestic steel industry recover from the recent steel import crisis. Under the ESLG program, the federal government would guarantee up to $1 billion in loans. Guarantee rates range from 85 to 95 percent. Weirton Steel is the sixth largest U.S. integrated steel company and employs 3,500 people. Its products include hot-rolled, cold-rolled, galvanized and tinplated steel.
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