BethForge

BethForge Inc. has formed a partnership
with Pennsylvania Steel Technologies for high-quality steels that enhance the performance of forged products - from rolls to turbine rotors while CENTEC looks to launch a major new product line.

BethForge will begin to realize the quality and cost benefits of the $50-million investment in PST's steelmaking facility to process steel by ladle refining, bottom pouring, tank degassing, and vacuum stream degassing.

Forging customers can specify these special processes that produce more consistent, cleaner steels that can provide a longer product life and improved weldability - and which will allow BethForge to enter new markets.

PST began shipping ingots to BethForge in the spring of 1995 in specially designed insulated rail cars that protect the ingots from excessive heat loss and potential thermal damage. The ingots, up to 130 inches in diameter and weighing up to 280 tons, arrive at BethForge with just-in-time scheduling at the No.1 press.

By the end of the year, PST became BethForge's primary supplier of ingots, and our electric furnace shop was closed. The shop, with four furnaces, helped supply steel for the nation during two World Wars and for specialized applications by a wide variety of industrial customers. In late 1995, BethForge also began consolidating its machine shops and central tool functions so it will be better positioned to be successful in the long run.

In 1995, we made strides to bolster our efficiency. We instituted a new scheduling system, aimed at increasing our throughput and taking into account the new configuration of BethForge that includes steel from PST.

Demand remained high for most BethForge products in 1995, and that strong demand continues into this year. We are working to further improve our quality, delivery and throughput. Continuous improvement specialists at all BethForge locations work with teams of employees to identify areas that can help us return to and sustain profitability.

There were also fundamental changes at CENTEC last year. Bethlehem Steel acquired the 50-percent interest in CENTEC by the French steelmaker Chavanne-Ketin. CENTEC continues technical and commercial partnerships with the French company, now known as Forcast International.

Our next step will be to bring on line technology to produce high-speed steel rolls that will improve the performance of North American hot strip mills, CENTEC's primary market. Hot strip mills are increasing their usage of high-speed steel rolls, which improves their product quality and lowers their cost of routine roll maintenance. These rolls allow hot strip mills to run longer without roll changes, which increases their productivity by maximizing available rolling time.

CENTEC continues to improve its productivity and quality. This year, we will intensify those efforts as well as work to successfully enter new markets with the high-speed rolls.