1994 Annual Report

Business Units and Facilities

Burns Harbor Division
The principal operations of the Burns Harbor Division are located in Indiana on Lake Michigan, about 50 miles southeast of Chicago, Illinois. Burns Harbor produces hot rolled sheet, cold rolled sheet, corrosion-resistant coated sheet steel and plates. It is a major supplier of sheet and plate products to the automotive, service center, construction, machinery and appliance markets. Burns Harbor operates a galvanizing line and a coke oven battery in Lackawanna, New York, and participates in a joint venture that owns and operates an electrogalvanizing line in Walbridge, Ohio.

Sparrows Point Division
The operations of the Sparrows Point Division are located on the Chesapeake Bay near Baltimore, Maryland. The Sparrows Point Division produces hot rolled sheet, cold rolled sheet, galvanized sheet, Galvalume(tm) sheet, tin mill products and steel plate. Its principal markets include service center, construction and containers. Sparrows Point also participates in a joint venture, known as Double G Coatings Company, L.P., which operates a steel coating line near Jackson, Mississippi. Sparrows Point provides cold rolled coils to Double G and takes approximately half of Double G's annual capacity of coated sheets.

Bethlehem Structural Products Corporation (BSPC)
Located in Bethlehem, Pennsylvania, BSPC produces structural steel shapes and piling primarily for the construction market. This business is also the only domestic producer of hot rolled sheet piling used in retaining walls and piers.

Pennsylvania Steel Technologies, Inc. (PST)
Located in Steelton, Pennsylvania, south of Harrisburg, PST uses electric furnace steelmaking and a continuous caster in the production of railroad rails for the rail transportation industry, specialty blooms for the forging industry and flat bars. It is one of only two rail producers in the United States. PST also produces large-diameter pipe for the oil and gas industries.

Manufacturing, Transportation and Natural Resources
Bethlehem also has the following additional Business Units and transportation and natural resource operations:

BethForge, Inc. (Bethlehem, Pennsylvania). A facility for the production of forgings and castings for the metals, electric power generation and nuclear industries.

CENTEC (Bethlehem, Pennsylvania). A facility for the production of centrifugally cast rolls for the metals industry.

BethShip Division. Two yards for ship and drill rig repair one at Sparrows Point, Maryland, and one at Port Arthur, Texas.

Transportation. Five shortline railroads serving Bethlehem's steel operations and other facilities; two 1,000-foot vessels one owned and one under long-term charter transporting raw materials on the Great Lakes; and a flat-bed trucking company serving Bethlehem's steel operations and other facilities.

Coal. Two mines and two cleaning plants in West Virginia producing metallurgical and steam coal.

Iron Ore. Three operations in which Bethlehem has partial interests: one in Minnesota, one in Canada and one in Brazil.

Bethlehem's Segments
For financial reporting purposes, Bethlehem disaggregates the results of its operations and certain other financial information into two segments: Basic Steel Operations and Steel Related Operations. Financial information with respect to these segments is included in Note C to the Consolidated Financial Statements.

• Products and services of the Basic Steel Operations segment include a wide variety of steel mill products described in the table on page 8; raw materials, such as iron ore and coal, which are used in Bethlehem's steelmaking operations and sold to trade customers; and railroad and Great Lakes shipping operations, which are used primarily in Bethlehem's steelmaking operations.

• The Steel Related Operations segment manufactures and fabricates various iron and steel products for the metals, electric power generation and nuclear industries through BethForge, Inc. and CENTEC. The BethShip Division, which is also part of Steel Related Operations, repairs vessels and marine drilling and production equipment for the marine and oil and gas industries and the United States Government, and manufactures industrial products.

• The products and services of the Basic Steel Operations and Steel Related Operations segments are distributed through Bethlehem's own sales organizations, which have sales offices at various locations in the United States, Canada and Mexico, and through foreign sales agents. Export sales were 2% of total sales in 1994, 2% in 1993 and 5% in 1992.

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