Heidtman Steel Planning to Build Continuous Annealing Facility

Toledo, Ohio - May 10, 2007 - Heidtman Steel Products Inc. - an industry leader in steel sales and processing with direct and joint venture production facilities totaling over two million square feet and serving over 1,200 customers in a variety of industries - is finalizing plans to construct a new continuous annealing (CAL) facility. "We have completed a lengthy study and are moving forward with our plans to construct this facility" states John Dillingham, Heidtman's Director of Technical Services for Automotive Products. The facility will be capable of producing advanced (AHSS) and ultra high strength steels (UHSS) including martensitic grades. With a capacity of 500,000 short tons per year, it will produce material thicknesses from .015" to .090" (.4 to 2.3mm) to a maximum width of 65" (1651mm).

According to John Bates, Chief Executive Officer of Heidtman, "Our plan to build a new continuous annealing facility is a natural progression with higher strength steels, and reinforces our brand as the high strength experts. It also underscores our commitment to our customers to remain at the cutting edge of technology. We see an emerging growth in demand for these products, especially in the automotive market."

Heidtman is looking at several Midwest locations for this project which will cost approximately $225,000,000 including downstream processing equipment. It is estimated the project will create 200 jobs. Putting an emphasis on logistical advantages, Heidtman is looking primarily at sites in Ohio, Michigan and Indiana, but has not ruled out other locations including the southern U.S. due to the growing number of automotive plants in that region.


About Heidtman Steel
Headquarted in Toledo, Ohio, Heidtman Steel Products is a world leader in marketing flat-rolled carbon steel products sold through its 15 state-of-the-art processing facilities. Noted for their expertise in high strength steels, Heidtman processes nearly five million tons of steel annually through its wholly owned facilities and joint ventures. Its products are distributed to a variety of industries including automotive, heavy truck, construction, pipe and tube, metal building, appliance, and furniture. For more information on Heidtman Steel, log on to www.heidtman.com.