Weymouth ress ke|ease

ko|| nos 07 11 22 3S 46 S0 S9

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10 november 2011

ConLacL lnformaLlon
!ames Parlsson
v for ubllc Affalrs
Moblle +919833166968
Lmall !amesP[WeymouLhln

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MuM8Al 10 november WeymouLh SLeel CorporaLlon Loday announced lLs plans Lo launch
a Lwo sLage resLrucLurlng process ln order Lo counLer Lhe long Lerm downLurn faced by Lhe
sLeel lndusLry due Lo Lhe growlng compeLlLlon from forelgn players 1he resLrucLurlng
process wlll sLarL from 1 !anuary 2011 and has been dlvlded lnLo Lwo sLages

1he flrsL sLage of Lhe process wlll span over 18 monLhs and wlll largely concenLraLe on cosL
cuLLlng measures 1he company predlcLs lLs revenue Lo decllne by 23 over Lhe comlng
monLhs and hence has declded Lo furLher shuL down less efflclenL planLs 1hree planLs have
been ldenLlfled by Lhe company LhaL would cease operaLlons over Lhe nexL few monLhs
lanL modernlsaLlons wlll be deferred and efforLs wlll be made Lo reduce supply and
purchase cosLs

1he second sLage lnvolves an annual caplLal expendlLure of $2 bllllon durlng Lhe nexL flve
years Lo purchase new processlng machlnes and consLrucL ulLra modern rolllng and hoLsLrlp
mllls lnvesLmenL wlll also be made on all planLs Lo comply wlLh federal anLlpolluLlon
sLandards 1he enLlre resLrucLurlng process wlll help Lhe company save $230 mllllon
annually Powever due Lo Lhe measures approxlmaLely 1000 salarled poslLlons mlghL have
Lo be leL go

Mr Carl WeymouLh Chalrman of Lhe 8oard sald lL's a challenglng Llme for Lhe enLlre
lndusLry and WeymouLh ls dolng lLs besL Lo reLaln lLs Lop poslLlon We are launchlng
exLenslve resLrucLurlng measures Lo remaln compeLlLlve We wlll have Lo Lake some brave
declslons durlng Lhese LesLlng Llmes and Lhe company wlll do lLs besL Lo asslsL every
employee affecLed by Lhe measures"

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