2010 is underway and Westfield Steel has weathered a major part of the recession.

Here’s the good news: the Gross Domestic Product (GDP) grew 2.8 percent for the third quarter. Basically, the four-quarter-long chain of decline has officially ended.

That is positive, but we can’t celebrate just yet. There is a mixed message in the steel market. Most service centers continue to de-stock to get the inventory cost in line with mill costs. U.S. mill capacity increased to a reported 62% in Novem-ber. Global crude steel production in November was down 5% vs. October but up 22% vs. November ’08. Imports increased 28% in October, then fell 47% (long) in November, but are down 40% vs. November ‘08. The Metals Service Center Institute (MSCI) reports that steel shipments are up for the fifth month nation-wide, but still down for October and November vs. last year.

Are manufacturers just re-stocking their inventory, or is there real demand? The residential construction market is near the bottom. The commercial and industrial construction market has not yet hit bottom. These are all mixed signals. Real demand for steel remains low and there are no positive indications that it will pick up anytime soon. Most consumers do not buy until they really need something – and that goes for our customers as well.

We spent last winter getting lean and mean. We spent last spring and summer getting smart and mean. Now, we have to focus on staying lean, being efficient, and reversing the “mean”. We have a good team in place. Let’s all work together to grind out the remaining parts of the recession.

Sincerely,

WESTFIELD STEEL WORKS Winter Newsletter 2010

Contact Us

530 State Road 32 WestWestfield, IN 46074call | 800-622-4984 fax | 317.896.5343westfieldsteel.com

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Westfield Steel Employee Service Anniversaries:

Westfield Steel Safety Updates

Westfield Steel is proud to announce the creation of their new blog: The Melting Point.

The blog can be found at: www.westfieldsteel.blogspot.com.

The Melting Point, written by Westfield Steel CFO Fritz Prine, will feature steel-industry commentary from an insider’s perspective and deliver trade news, business advice and a unique vantage point on the steel industry.

Follow each blog by clicking the “Follow” button, and make sure to share your thoughts by commenting on the post.

As of Feb 8, 2010, there have been 830 days with no lost time accidents.

40 employees have qualified for safety incentive awards for being accident- free for periods ranging from 6 months to 2 years.

Westfield Steel has completed a successful Indiana OSHA audit in August.

Westfield Steel also completed a successful fire inspection at the Westfield location.

Westfield Steel Unveils The Melting Point Company Blog September

Fred Kinkead 26 Years

Earl Doty 22 Years

Everett Lucas 11 Years

Denise West 11 Years

Victor Vaughn 10 Years

Dale Adkins 10 Years

Robert Moore 5 Years

Stephen Neidermeier 4 Years

Franklin Roberts 2 Years

David Harville 3 months

Chris Lowe 3 months

Timothy Farmer 3 months

October

Kenneth Douglas 31 Years

Michael Pickard 15 Years

Jon DeaKyne 14 Years

Jack Laudig 12 Years

Ronald Santana 5 Years

Scott Paterson 1 Year

Michael McCarley 2 months

NovemberDale Miller 10 Years

James Harrison 10 Years

Richard Strickland 3 Years

December

Paul Edwards 19 Years

Harry Flynn 19 Years

Thomas Kassenbrock 10 Years

Donald Young 5 Years

January

Christopher Vawter 17 Years

Edward Armstrong 10 Years

Julian Negrete 3 Years

John Tatman 3 Years

Robert Rood 2 Years

Charles Kelly 2 Years

February

Richard Watkins 11 Years

Katina Cherry 8 Years

Steven Ridge 5 Years

Eriks Irbe 3 Years

Jerry Cavin 2 Years

Justin Hall 2 Years

When you find a quality company that never fails to deliver on time, you stick with it.

You also remain a loyal customer.

Just ask Brian Duley, project engineer, U.S. Conveyor Technologies MFG, Inc., Mackinaw, Ill., who has been a customer of Westfield Steel for more than 10 years.

“I can’t say enough great things about Westfield Steel,” Duley said. “They have been our go-to source for steel. They have an excellent service center with employees that get back with us right away on quotes when we need to buy steel. We receive quotes the same day for materials we need.”

U.S. Conveyor Technologies MFG Inc. specializes in production of heavy and light duty conveyors including in-feed conveyors, magnetic separation sys-tems, picking stations, and oscillating conveyors.

From recycling facilities to scrap yards, U.S. Conveyor Technologies MFG, Inc. has been providing indus-try professionals with conveyors of the highest quality and the heaviest construction in the field for more than 20 years.

U.S. Conveyor Technologies engineers and custom builds every system to maximize customers’ productivity, and relies on Westfield Steel for their steel products.

“Westfield Steel takes care of their customers and their staff is very knowledgeable and helpful with all of our questions,” Duley said. “They know how to provide quality service and are very fast and efficient. They also provide high quality steel.”

Duley plans to stay a customer of Westfield Steel for years to come.

“I know when I deal with Westfield Steel that I will be getting the very best for what I’m paying and will be taken care of without having to wait,” Duley said. “It’s that personalized service that keeps people loyal to Westfield Steel.”

US Conveyor Technologies MFG Inc. counts on Westfield Steel to always come through

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CUSTOMER PROFILE

Employee Announcements

Driver Vince Beer and wife Debra welcomed a daughter, Samantha Itura Beer, into the world on December 28, 2009. Congratulations to the family!

A separation system built by US. Conveyor Technologies. This piece, located in Mexico, separates aluminum, copper, stainless steel and residual fluff from shredded scrap iron. Also pictured is one of the larger pieces the company builds: an 8’ diameter by 70’ long Hexagonal Trommel used to size the material before separation. This project is proof that products from Westfield Steel are used all over the world.

JR Watkins, production manager of Westfield Steel in Terre Haute, Ind. has been tinkering with cars since he could see over the fender. Before most people were attempting at-home car-repair, Watkins was constantly fixing his mom and stepfather’s vehicles.

“I like trying to figure out the prob-lems,” said Watkins. “The satisfaction for me is in seeing what shape the car is in when it rolls into the garage and what it looks like when it rolls out of the garage.”

His penchant for perfection comes in handy at Westfield Steel, where Wat-kins has now worked for 11 years. As production manager, Watkins oversees the rest of the workers in the shop and schedules which orders to complete at what time.

Watkins hasn’t always had so much responsibility, however. Watkins lost his previous job due to a broken collar bone and was searching for employ-ment when Westfield Steel entered the picture. Eleven years ago a temp service contacted Watkins and asked if he was “any good at welding.”

Watkins joined the welding/fabrica-tion department soon after and has been there ever since.

When he’s not working at Westfield Steel, it is Watkins’ love for cars that consumes much of his free time. Watkins began racing “Bomber” cars last year and finished 10th in points at Lincoln Park Speedway, a place that becomes like a second home during the racing season.

“This year, I’m up in equipment. I have more horsepower in the car. I’m going to try to be more competitive,” Watkins said.

Watkins has wanted to race for a long time, but the hobby is expensive. He works to support his passion by doing custom car detailing out of his own garage. The only other obstacle to get-ting started was easing his wife’s fears about the dangers of racing.

“We saw some pretty hairy wrecks last year,” he said. “That was the main thing my wife was concerned with.”

Watkins said that among the safety equipment required is a helmet, a fire-retardant suit, a roll cage and an in-the-car fire extinguisher. These regulations insure Watkins can leave the track behind each weekend and return to Westfield Steel on Mondays – and Watkins is happy to do so.

“During the time I’ve been [at West-field Steel] I’ve learned a lot. Some of the parts we do are amazing, especially when you can see where they are going on our customers’ websites,” Watkins said. “Also, I really enjoy the people I work with. Just about everyone here will bend over backwards to make sure the customer gets taken care of. And, [I enjoy] my guys in the production department, [because] I respect them and they respect me in return. With that, I don’t have to stand over them all the time. I appreciate the fact that they are being paid for a job and they come in and do it.”

JR Watkins: Production manager by day, race car driver by night

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EMPLOYEE PROFILE