Morgan Signs Spares Partnership Agreement with ISPAT
WORCESTER, Mass., August 27, 1997

Morgan Construction Company has received a contract from Ispat International (UK) Ltd. for supply of Morgan spare parts to Ispat's mills throughout the world.

Under this "Spares Partnership Agreement," the Ispat operating companies will benefit from a reduction of inventory carrying cost, a reduction of procurement cycle times and costs, a reduction of spares usage, the elimination of emergency costs, a good and consistent supply of quality spare parts, Morgan's technical assistance and continuous technology updates, among others.

The agreement, valid for 3 years, is the forerunner of subsequent "Spares Partnership Agreements" with Ispat's individual mills, according to Gabriel Royo, managing director of Morgan Spares & Guides Division.

"This agreement will benefit both parties," Royo said. "It will enable Ispat to obtain savings on both parts and administrative costs, while being assured of a source of quality parts that will meet their required needs on time and within budget. For Morgan, it will help us better plan our manufacturing capacity, as well as eliminating emergency costs." Ispat is the world's largest independent steel producer, and one of the 14th largest overall. It operates mills in Canada, Germany, Indonesia, Ireland, Kazakhstan, Mexico, United Kingdom, United States, and West Indies.

Morgan Construction Company, is a designer and producer of high-quality rolling mill products and services for the metal industry worldwide.

Questions or comments can be e-mailed to: sales@morganco.com