1996 Annual Report

Bethlehem's Core Steel Businesses 1997

Burns Harbor Division, Burns Harbor, Indiana
(Includes the Galvanized Products Division and Lackawanna Coke Division, Lackawanna, New York.)

Facilities
At Burns Harbor: two blast furnaces, two coke oven batteries, coal injection facility, three basic oxygen furnaces, vacuum degassing facility, two continuous slab casters, slabbing mill, two sheared plate mills, hot strip mill, cold reducing mill, two temper mills, electrogalvanizing line, hot dip galvanizing line.

Products and Markets
Burns Harbor also participates in a joint venture that operates an electrogalvanizing line in Walbridge, Ohio, and a joint venture in Northern Indiana that processes hot rolled sheet into light gauge cold rolled sheet products.

At Lackawanna: cold reducing mill, hot dip galvanizing line, coke oven battery.

Products: Hot rolled sheet, cold rolled sheet, electrogalvanized sheet, hot dip galvanized sheet, galvannealed sheet, carbon and alloy plates, coke.

Markets: Automotive, office furniture, home appliance, container, service centers, industrial machinery, farm equipment, construction, construction equipment, railroad cars, pipe and tube, pipeline, shipbuilding.

Sparrows Point Division, Sparrows Point, Maryland

Facilities
Blast furnace, two basic oxygen furnaces, two-strand continuous slab caster, sheared plate mill, hot strip mill, three cold reducing mills, two hot dip galvanizing lines, Galvalume^� line, hot dip galvanizing/Galvalume^� line, two tin plating lines, chrome plating line.

Sparrows Point also participates in a joint venture in Jackson, Mississippi, that operates a hot dip galvanizing/Galvalume^� line.

Products and Markets
Products: Hot rolled sheet, cold rolled sheet, hot dip galvanized sheet, Galvalume^� sheet, tin plated sheet, chrome plated sheet, plates.

Markets: Construction, metal building and roofing, container, service center, automotive, heating/air conditioning, machinery, shipbuilding, oil and gas pipeline, tubing.

Pennsylvania Steel Technologies, Inc., Steelton, Pennsylvania

Facilities
DC electric furnace, ladle furnace, vacuum degasser, continuous bloom caster, blooming mill, rail mill, rail head-hardening facility, flat bar mill, large-diameter pipe mill (U-ing, O-ing and expanded, double submerged arc weld mill).

Products and Markets
Products: Head-hardened rails, standard rails, forging blooms, rerolling blooms, billets, flat bars, special sections, large-diameter pipe.

Markets: Rail transportation, machinery, forging, special quality bar mills, oil and gas transmission.

Other Operations

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 trucking brokerage company serving Bethlehem’s steel operations and other facilities.

Coal: A facility in West Virginia producing metallurgical and steam coal.

Coke: In addition to the facilities at the Burns Harbor Division, Bethlehem operates two coke oven batteries in Bethlehem, Pennsylvania, that supply coke to Burns Harbor, Sparrows Point and trade customers.

Iron Ore: Three operations in which Bethlehem has partial interests: one in Minnesota, one in Canada (sales transaction pending) 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 B to the Consolidated Financial Statements.

Products and services of the Basic Steel Operations segment include a wide variety of steel mill products described on this page; 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 Roll Corporation. BethShip, Inc., which is also part of Steel Related Operations, repairs vessels for the marine industry and the United States Government and manufactures industrial products. As previously announced, all of these operations will be sold or shut down.

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 and Mexico, and through foreign sales agents. Export sales were 3% of total sales in 1996, 5% in 1995, and 2% in 1994.