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                                                                     EXHIBIT 4.8


                        AMENDMENT NO. 2 TO LOAN AGREEMENT


         AMENDMENT NO. 2, dated as of December 20, 1996, among GS TECHNOLOGIES
OPERATING CO., INC., a Delaware corporation ("GSTOC"), and its direct and
indirect Subsidiaries, CI (U.S.) CORP. (formerly Control International, Inc.), a
Utah corporation ("CII"), MINERAL REAGENTS INTERNATIONAL INC., a Delaware
corporation ("MRII"), GEORGETOWN INDUSTRIES, INC., a Delaware corporation
("GII"), GEORGETOWN INVESTMENT CORPORATION, a Delaware corporation ("GIC"),
GEORGETOWN STEEL CORPORATION, a Delaware corporation ("GSC"), FLORIDA WIRE AND
CABLE, INC., a Delaware corporation ("FWCC"), GEORGETOWN FINANCE CORPORATION, a
Delaware corporation ("GFC"), GEORGETOWN WIRE COMPANY, INC., a Delaware
corporation ("GWC"), and K-LATH CORPORATION, INC., a California corporation
("K-Lath")) (GSTOC, CII, MRII, GII, GIC, GSC, FWCC, GFC, GWC and K-Lath,
individually a "Borrower", and collectively "Borrowers"), the Lenders (as
defined herein), MELLON BANK, N.A., a national banking association ("Mellon") as
documentation agent for the Lenders (Mellon, in such capacity, being
"Documentation Agent"), and GENERAL ELECTRIC CAPITAL CORPORATION, a New York
corporation ("GE Capital"), as agent for the Lenders (GE Capital, in such
capacity, being "Agent").

         Borrowers, Agent, Documentation Agent and Lenders are parties to a Loan
Agreement, dated as of October 5, 1995, as amended by Amendment No. 1 to Loan
Agreement dated July 8, 1996 (the "Loan Agreement"). Borrowers, Agent,
Documentation Agent and the Lenders desire to amend the Loan Agreement in
certain respects, and, accordingly, Borrowers, Agent, Documentation Agent and
Lenders agree as follows:

         1. DEFINITIONS. Except as otherwise provided herein, the terms defined
in the Loan Agreement are used herein as defined therein.

         2. AMENDMENT. Effective as of the date hereof, Sections 2.3(a) and (c)
of the Loan Agreement are restated as follows:

                  (a) Upon and subject to the terms and conditions hereof, the
         L/C Issuer agrees to issue Letters of Credit, and each Revolving Credit
         Lender agrees for itself only to incur Letter of Credit Undertakings,
         from time to time from the Closing Date to but excluding the Revolving
         Credit Loan Commitment Termination Date; provided, that the maximum
         aggregate stated or face amount of Letters of Credit issued and
         outstanding at any time plus the aggregate principal amount of
         unreimbursed drawings on Letters of Credit at such time shall not
         exceed $40,000,000. No Letter of Credit shall have a stated expiry date
         earlier than 30 days after the date of its issuance, and no Letter of
         Credit shall have a stated expiry date or, if by its terms it is
         periodically renewable, be subject to being terminated by the L/C
         Issuer (unless renewal is permitted by the L/C Issuer in its sole
         discretion, in which case the L/C Issuer will not permit renewal to a
         date beyond that determined in accordance with the following portion of
         this sentence) later than the earlier of the following: (A) (i) the one
         year anniversary of its issuance in the case of




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         Letters of Credit with an "evergreen" provision for the account of
         GSTOC in the aggregate amount of $22,500,000 or less for the benefit of
         American Iron Reduction, L.L.C. ("AIR") or its assignees, which support
         GSTOC's equity contribution obligation to AIR (collectively the "AIR
         Letters of Credit"), or August 30, 1998 in the case of AIR Letters of
         Credit without an "evergreen" provision, (ii) the one year anniversary
         of its issuance (or, if renewable and renewal has been permitted, the
         one year anniversary of its last renewal) in case of any standby Letter
         of Credit, or (iii) the date 90 days after its issuance in the case of
         any commercial Letter of Credit, and (B) in any case, August 31, 2001.
         Each Letter of Credit shall be in a minimum amount of $50,000. Subject
         to the terms and conditions set forth in this Agreement, upon GSTOC's
         request that any Letter of Credit be issued, provided that at the time
         of the requested issuance the amount of such Letter of Credit does not
         exceed Revolving Credit Availability of the Borrower for whose account
         such Letter of Credit is requested, the L/C Issuer shall issue the
         requested Letter of Credit and, upon the issuance thereof, each
         Revolving Credit Lender shall incur Letter of Credit Undertakings with
         respect thereto ratably in accordance with its Revolving Credit
         Percentage. Notwithstanding anything herein to the contrary, the L/C
         Issuer may decline to issue any Letter of Credit if the beneficiary or
         the conditions of drawing are reasonably unacceptable to the L/C Issuer
         or if the purpose of issuance is illegal or is in contravention of any
         law, rule, regulation or public policy or any judgment, decree, writ,
         injunction, order or award of any arbitrator, court or governmental
         authority; provided, the L/C Issuer shall not decline to issue the AIR
         Letters of Credit. Such AIR Letters of Credit shall be in the form as
         shown in Exhibit N attached hereto (formerly, in Amendment No. 1 to
         this Agreement dated July 8, 1996, designated as Exhibit "A"), if with
         an expiry date of August 30, 1997, or in the form as shown in Exhibit N
         hereto but without the "evergreen" provision, if with an expiry date of
         August 30, 1998. Notwithstanding the foregoing, the issuance of any and
         all Letters of Credit shall continue to be subject to the terms and
         conditions of this Agreement, including the provisions of Section 3.12
         hereof.

                  (c) Borrowers agree (i) to pay to Agent, for the ratable
         benefit of the Revolving Credit Lenders, a fee computed at the per
         annum rate equal to the then Applicable Revolving Credit Loan Margin
         percentage with respect to LIBOR Borrowings, of the maximum amount
         available to be drawn from time to time under each standby Letter of
         Credit for the period from and including the date of issuance of such
         standby Letter of Credit to and including the stated expiry date of
         such standby Letter of Credit, which fees shall be calculated on the
         basis of a 360-day year and paid quarterly in arrears; provided,
         however, that with respect to the AIR Letters of Credit, such fee shall
         be at the annual rate of 1 3/4% of the maximum amount available to be
         drawn from time to time under the AIR Letters of Credit for the period
         from and including the date of issuance of the AIR Letters of Credit to
         and including the stated expiry date of the AIR Letters of Credit,
         calculated on the basis of a 360-day year and paid quarterly in
         arrears, (ii) to pay to Agent, for the ratable benefit of the Revolving
         Credit Lenders, a fee of 1/2% of the face amount of each commercial
         Letter of Credit, which fee shall be paid at each time any commercial
         Letter of Credit is drawn upon or expires, (iii) to pay an additional
         fee to the L/C Issuer for its own account computed at the rate of 1/4%
         per annum of the maximum amount available to be drawn from time




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         to time under each standby Letter of Credit for the period from and
         including the date of issuance of such standby Letter of Credit to and
         including the stated expiry date of such standby Letter of Credit,
         which fee shall be calculated on the basis of a 360-day year and paid
         quarterly in arrears, and (iv) to pay the L/C Issuer for its own
         account a fee of 1/16% of the face amount of each commercial Letter of
         Credit, which fee shall be paid at each time any commercial Letter of
         Credit is drawn upon or expires. All such fees are nonrefundable and
         Borrowers shall not be entitled to any rebate of any portion thereof if
         such Letter of Credit does not remain outstanding through such period
         or for any other reason. Borrowers further agree to pay to the L/C
         Issuer, on demand and for its own account, such other administrative
         fees, charges and expenses of the L/C Issuer in respect of the
         issuance, negotiation, acceptance, amendment, transfer and payment of
         such Letter of Credit or otherwise payable pursuant to the application
         and related documentation under which such Letter of Credit is issued.

         3. CONFIRMATION OF REPRESENTATIONS AND WARRANTIES. Borrowers hereby
confirm that the representations and warranties of Borrowers contained in the
Loan Documents were correct in all material respects as to Borrowers and their
Subsidiaries taken as a whole on and as of October 5, 1995, and that such
representations and warranties are correct as to Borrowers and their
Subsidiaries taken as a whole on the date hereof, except (i) to the extent that
any such representation or warranty expressly relates to an earlier date, and
(ii) for changes resulting from transactions contemplated or permitted by the
Loan Documents and changes occurring in the ordinary course of business that in
the aggregate are not materially adverse.

         4. NO DEFAULT. Borrowers represent and warrant that no Default or Event
of Default exists as of the date hereof.

         5. MISCELLANEOUS. The Loan Agreement is, and shall be, in full force
and effect and is hereby ratified and confirmed in all respects except that on
and after the date of this Amendment No. 2 (i) all references in the Loan
Agreement to "this Agreement", "hereto", "hereof", "hereunder" or words of like
import referring to the Loan Agreement shall mean the Loan Agreement as amended
by this Amendment No. 2, and (ii) all references in the other Loan Documents to
the "Loan Agreement", "thereto", "thereof", "thereunder" or words of like import
referring to the Loan Agreement shall mean the Loan Agreement as amended by this
Amendment No. 2. The execution, delivery and effectiveness of this Amendment No.
2 shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Agent or any Lender under the Loan Agreement or
any other Loan Document, nor constitute a waiver of any provision of the Loan
Agreement or any other Loan Document. This Amendment No. 2 and the obligations
arising hereunder shall be governed by, and construed and enforced in accordance
with, the laws of the State of Illinois applicable to contracts made and
performed in such state, without regard to the principles thereof regarding
conflict of laws, and any applicable laws of the United States of America.

         6. COUNTERPARTS. This Amendment No. 2 may be executed in any number of
separate counterparts, each of which shall, collectively and separately,
constitute one agreement.




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         IN WITNESS WHEREOF, this Amendment No. 2 has been duly executed as of
the date first written above.


GS TECHNOLOGIES OPERATING                     CI (U.S.) CORP. (FORMERLY
CO., INC., as Borrower                        CONTROL INTERNATIONAL, INC.),
                                              as Borrower


By:                                           By:
     ------------------------------                ---------------------------
     Name:  Luis E. Leon                           Name:  Luis E. Leon
     Title: Senior Vice-President                  Title: Vice-President



MINERAL REAGENTS                              GEORGETOWN INDUSTRIES, INC.,
INTERNATIONAL INC., as Borrower               as Borrower


By:                                           By:
     ------------------------------                ---------------------------
     Name:  Luis E. Leon                           Name:  Luis E. Leon
     Title: Vice-President                         Title: Vice-President



GEORGETOWN INVESTMENT                         GEORGETOWN STEEL CORPORATION,
CORPORATION, as Borrower                      as Borrower


By:                                           By:
     ------------------------------                ---------------------------
     Name:  Luis E. Leon                           Name:  Luis E. Leon
     Title: Vice-President                         Title: Vice-President



FLORIDA WIRE AND CABLE, INC.,                 GEORGETOWN FINANCE
as Borrower                                   CORPORATION, as Borrower


By:                                           By:
     ------------------------------                ---------------------------
     Name:  Luis E. Leon                           Name:  Luis E. Leon
     Title: Vice-President                         Title: Vice-President




GEORGETOWN WIRE COMPANY,                      K-LATH CORPORATION, INC.,
INC., as Borrower                             as Borrower


By:                                           By:
     ------------------------------                ---------------------------
     Name:  Luis E. Leon                           Name:  Luis E. Leon
     Title: Vice-President                         Title: Vice-President




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GENERAL ELECTRIC CAPITAL                      MELLON BANK, N.A.,
CORPORATION, as Agent and Lender              as Documentation Agent and Lender


By:                                           By:
     ------------------------------                ---------------------------
     Name:                                         Name:
           ------------------------                      ---------------------
     Title:                                        Title:
           ------------------------                      ---------------------



NATIONSBANK, N.A., as Lender                  PILGRIM PRIME RATE TRUST,
                                              as Lender


By:                                           By:
     ------------------------------                ---------------------------
     Name:                                         Name:
           ------------------------                      ---------------------
     Title:                                        Title:
           ------------------------                      ---------------------



NBD BANK, as Lender                           PNC BANK, NATIONAL ASSOCIATION,
                                              as Lender


By:                                           By:
     ------------------------------                ---------------------------
     Name:                                         Name:
           ------------------------                      ---------------------
     Title:                                        Title:
           ------------------------                      ---------------------



LASALLE NATIONAL BANK,                        HARRIS TRUST AND SAVINGS BANK,
as Lender                                     as Lender


By:                                           By:
     ------------------------------                ---------------------------
     Name:                                         Name:
           ------------------------                      ---------------------
     Title:                                        Title:
           ------------------------                      ---------------------



SCOA PLANT FINANCING COMPANY,
as Lender


By:                                          
     ------------------------------          
     Name:                                   
           ------------------------            
     Title:                                        
           ------------------------                    




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