Monday January 19, 2:45 pm Eastern Time
Company Press Release
NS Group Approves New Furnace Installation
NEWPORT, Ky.--(BUSINESS WIRE)--Jan. 19, 1998--NS Group Inc. (NYSE: NSS - news) announced today that its Board of Directors has authorized the purchase and installation of a new AC electric arc furnace at its Newport Steel facility in Wilder, Ky. C. R. Borland, Chairman and CEO of NS Group Inc., commented, ''We are extremely excited about this project. The new furnace, which will replace Newport's three existing furnaces, will lower costs and, at the same time, increase total effective capacity.''
The estimated cost of the project is $25 million. The Company is currently evaluating proposals from construction, engineering, and equipment suppliers and expects to award contracts by March. Start-up of the new furnace is currently estimated for the Spring of 1999. Mr. Borland continued, ''The benefits to be achieved from this investment are significant. Once completed, we estimate the project's payback to be as little as two years. It's certainly an important step to further enhancing the competitive position of Newport Steel in the welded tubular marketplace.''
NS Group Inc. is a holding company that owns three operating subsidiaries: Newport Steel Corp., a manufacturer of welded tubular steel products and hot rolled coils; Koppel Steel Corp., a manufacturer of seamless tubular steel products and special bar quality products; and Imperial Adhesives Inc., a manufacturer of industrial adhesives products. NS Group Inc.'s common stock (symbol:NSS) is traded on the New York Stock Exchange.
This report contains forward-looking information with respect to the Company's operations and beliefs. Actual results may differ from these forward-looking statements due to numerous factors, including those discussed in the Company's Annual Report on Form 10-K for its fiscal year ended Sept. 27, 1997. See introductory paragraphs of Management's Discussion and Analysis of Financial Condition and Results of Operations.
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Contact:
NS Group Inc., Newport
Clifford R. Borland, 606/292-6809
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