NORTH AMERICAN STEEL INDUSTRY OVERVIEW

Steelmaking in North American is world class. North American steelmakers are leaders in labor productivity, technology development and implementation. The American steel industry generates 1.2 million direct and indirect jobs and contributes $350 billion to the economy each year.

To produce steel, facilities use one of two processes, which utilize different raw materials and technologies. There are two main steelmaking processes used in North America--the Basic Oxygen Furnace and the Electric Arc Furnace.

The basic oxygen furnace (BOF) process uses 25 to 35 percent old steel to make new steel. It produces products, including automotive fenders, encasements for refrigerators, and packaging like soup cans, five-gallon pails and 55-gallon drums--whose major required characteristic is drawability.

The electric arc furnace (EAF) process uses virtually 100 percent old steel to make new steel. It produces products, including structural beams, steel plates, and reinforcement bars--whose major characteristic is strength.

Construction, automotive, and industrial equipment account for more than 75% of total of our steel consumption in the U.S., with construction representing 22% of total steel shipments.

The highest geographic concentration of steel mills is in the Great Lakes region, including Indiana, Illinois, Ohio, Pennsylvania, Michigan, and New York. Approximately 80% of U.S. steelmaking capacity is in these states.

NORTH AMERICAN STEEL INDUSTRY COMMITMENT TO SUSTAINABILITY

The industry commitment to sustainability is especially present through the producing members of the American Iron and steel Institute that have committed to:

• Operate their business in an efficient and financially sustainable way in order to supply steel products and solutions that satisfy their customers and add value to stakeholders

• Optimize the eco-efficiency of their products through life cycle, including increased resource and energy efficiency in the production of steel and during the use of steel products. They are committed to the promotion of the recovery, reuse and recycling of steel products through their support of the Steel Recycling Institute.

• Foster the health and safety of employees in the steel industry and provide healthy, safe and environmentally sound products.

• Demonstrate social responsibility by promoting values and initiatives that show respect for people and communities that are associated with their business.

• Conduct their business with high ethical standards in dealings with employees, customers, suppliers and the community.

• Engage stakeholders and independent third parties in constructive dialogue to help implement sustainable development.

• Build on their knowledge of sustainability and willingly share it with others. They will be open and active in their communications and help steel companies and organizations with the supply chain to implement sustainable practices.