Properties Relating to the
Basic Steel Operations Segment
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. Principal
facilities include a sintering plant, two coke oven batteries,
two blast furnaces including new coal injection facilities, three
basic oxygen furnaces with a combined annual raw steel production
capability of approximately 5.6 million tons, a vacuum degassing
facility, two continuous slab casters with a combined annual
production capability of approximately four million tons, a
50 x 90-inch slabbing mill, two sheared plate mills
(110-inch and 160-inch), an 80-inch hot-strip mill, two
continuous pickling lines, an 80-inch five-stand cold reducing
mill, sheet finishing mills, a continuous heat treating line,
batch annealing facilities, a 48-inch continuous
electrogalvanizing line and a 72-inch hot-dip galvanizing line.
The Division operates a cold reducing mill, a continuous pickling
line, a galvanizing line and two coke oven batteries in
Lackawanna, New York. About 80 percent of the steel produced at
Burns Harbor is continuously cast; the remaining 20 percent is
ingot cast. Ingot cast slabs are used primarily to make steel
plates.
The Burns Harbor Division's
utilization of raw steel production capability was 103 percent
during 1995.
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� sheet, tin mill
products and steel plate. Its principal markets include
construction, containers and service centers. Principal
facilities include a sintering plant, a large blast furnace, two
basic oxygen furnaces with an annual raw steel production
capability of approximately 3.6 million tons, a two-strand
continuous slab caster with an annual production capability of
approximately 3.6 million tons, a 160-inch sheared plate mill, a
68-inch hot-strip mill, three continuous pickling lines, three
cold reducing mills (66-inch, 56-inch and 48-inch), continuous
and batch annealing facilities, two galvanizing lines, a
Galvalume� line, a 48-inch hot-dip galvanizing/Galvalume� line
and tin mill facilities that include tin and chrome plating
lines. The Division continuously casts essentially 100 percent of
its total production volume.
The Sparrows Point Division's
utilization of raw steel production capability was 100 percent
during 1995.
Bethlehem
Structural Products Corporation
Located in Bethlehem, Pennsylvania, BSPC produces structural steel shapes and piling primarily for the construction market from steel produced at PST. This business is also the only domestic producer of hot rolled sheet piling used in retaining walls and piers. Principal facilities include a 40-inch blooming mill and a 44-inch structural rolling mill. BSPC also operates two coke oven batteries that supply coke to the Burns Harbor Division, the Sparrows Point Division and trade customers.
BSPC's utilization of raw steel
production capability was 66 percent during 1995. In late 1995,
BSPC discontinued iron and steelmaking operations, production of
heavy structural shapes (48-inch structural rolling mill) and
foundry operations. Light and medium structural shapes production
has been consolidated on the recently upgraded 44-inch rolling
mill. It is now being supplied primarily with continuously cast
blooms from PST.
Pennsylvania Steel
Technologies, Inc.
Located in Steelton,
Pennsylvania, south of Harrisburg, Pennsylvania, PST uses
electric furnace steelmaking and a continuous caster in the
production of railroad rails, specialty blooms 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 and
supplies steel to BSPC and BethForge, Inc. Principal facilities
include a new DC electric arc furnace with an annual raw steel
production capability of approximately 1.3 million tons and an
older AC electric arc furnace, a vacuum degassing facility, a
continuous bloom caster, a 44-inch blooming mill, a 28-inch rail
mill, in-line rail head-hardening facilities, finishing and
shipping facilities for long-length (80-foot) rails, a 20-inch
bar mill and an electric fusion welded pipe mill.
PST's utilization of raw steel
production capability was 52 percent during 1995.
Joint Ventures
Bethlehem participates in a
joint venture, known as Double G Coatings Company, L.P., which
operates a 270,000 ton per year sheet coating line near Jackson,
Mississippi. The new line produces galvanized and Galvalume�
coated sheets primarily for the construction market. The Sparrows
Point Division provides cold rolled coils for approximately half
of Double G's annual capacity and is responsible for marketing
its share of the finished product.
Bethlehem also participates in
a joint venture which owns and operates a 400,000 ton per year
electrogalvanizing line at Walbridge, Ohio. This facility
produces corrosion-resistant sheet steel primarily for the
automobile industry and other consumer durables markets. The
Burns Harbor Division provides cold rolled coils for 75 percent
of Walbridge's annual capacity and is responsible for marketing
its share of the finished product.
Bethlehem also participates in
two joint ventures with facilities located adjacent to the Burns
Harbor operations: Indiana Pickling and Processing Company that
operates a pickling line and Chicago Cold Rolling, L.L.C. that
will operate a reversing cold mill complex now under
construction.
Bethlehem also has indirect
equity interests in various iron ore properties. See "Raw
Material Properties and Interests" below.
Raw Material Properties and
Interests
Iron Ore. Bethlehem has indirect equity interests
in various iron ore operating properties, which (excluding
tonnages applicable to interests owned by others) it estimates
contained recoverable reserves at December 31, 1995
sufficient to produce at least 11 million tons of direct shipping
iron ore from properties located in Brazil and 482 million tons
of iron ore concentrates and pellets, of which 219 million tons
are from properties located in Minnesota and 263 million tons are
from properties located in Canada. In addition to the estimated
reserves at operating properties, Bethlehem also has indirect
equity interests in undeveloped or nonoperating iron ore
properties, which (excluding tonnages applicable to interests
owned by others) it estimates contained recoverable reserves at
December 31, 1995 sufficient to produce at least 28 million
tons of direct shipping iron ore from properties located in
Brazil and 126 million tons of iron ore pellets from properties
located in Minnesota.
The iron ore operating
properties in which Bethlehem has interests have mining and
processing facilities which are capable of supplying the major
portion of Bethlehem's current annual iron ore requirements.
However, taking into account the location of Bethlehem's steel
operations and the iron ore products best suited to these
facilities, Bethlehem has found it advantageous to engage in iron
ore sales and exchanges with other consumers and to purchase a
portion of its iron ore requirements. These purchases have been
from various sources, including sources in which it has ownership
interests, under a variety of contractual arrangements extending
over varying periods of time.
Bethlehem's share of the annual
iron ore production by enterprises in which it had ownership
interests, for Bethlehem's use or sale to trade customers, was
14.7 million tons in 1995 and 13.8 million tons in 1994. In
addition to these sources, Bethlehem purchased 2.0 million tons
and 1.6 million tons of iron ore in 1995 and 1994, respectively,
from sources in which it had no ownership interests.
In 1995, Bethlehem obtained approximately 85 percent of its iron ore requirements from operations in which it had ownership interests, compared to 87 percent in 1994. Of the iron ore consumed by Bethlehem in 1995, approximately 67 percent consisted of pellets and 33 percent of sinter.
Through December 31, 1996,
Bethlehem is committed to purchase from sources in which it has
ownership interests .2 million tons of iron ore in excess of such
ownership interests.
Bethlehem had trade sales of
iron ore in 1995 and 1994 of .6 million tons and 2.3 million
tons, respectively. Additional iron ore trade sales commitments
through December 31, 1996, presently aggregate 1.0 million
tons. No iron ore trade sales commitments exist beyond 1996.
The interests in foreign iron
ore properties described above are subject to the risks
associated with investments in foreign countries, including the
risk of nationalization.
Coal and Coke. Bethlehem owns and leases coal operating
properties in West Virginia, which it estimates contained
recoverable reserves at December 31, 1995, sufficient to
produce at least 81 million tons of coal, of which approximately
25 percent and 75 percent, respectively, are metallurgical and
steam coal.
In addition to the estimated
reserves at operating properties, Bethlehem also owns and leases
undeveloped or nonoperating coal properties in Pennsylvania and
West Virginia, which it estimates contained recoverable reserves
at December 31, 1995, sufficient to produce at least 168
million tons of coal, of which approximately 89 percent and 11
percent, respectively, are metallurgical and steam coal.
Bethlehem's coal operations
produced 3.3 million tons of coal in 1995 and 3.9 million tons in
1994. Trade shipments of coal were 2.2 million tons in 1995
compared to 2.7 million tons in 1994.
In 1995, Bethlehem obtained
approximately 19 percent of its coal requirements from its own
mines, compared to 33 percent in 1994. The balance of Bethlehem's
requirements was purchased from commercial sources. Through
December 31, 2005, Bethlehem is committed to satisfy certain
of its coal requirements from a single supplier.
Bethlehem continues to operate
coke-making facilities at Bethlehem, Pennsylvania; Burns Harbor,
Indiana; and Lackawanna, New York.
Other Raw Materials.
Bethlehem purchases its other raw material requirements from
commercial sources.
Transportation
Bethlehem owns five subsidiary
shortline railroads which primarily transport raw materials and
semifinished steel products within various Bethlehem operations.
Bethlehem also owns a flat�bed trucking company serving
Bethlehem's steel operations and other facilities.
The Burns Harbor Division
operates two 1,000 foot ore vessels (one owned and one under
long-term charter), which are used for the transportation of iron
ore on the Great Lakes.
Properties Relating to the
Steel Related Operations Segment
BethForge, Inc. has a facility
for the production of forgings located in Bethlehem,
Pennsylvania. An ingot teeming facility and vacuum stream
degassing unit were installed for BethForge's use at PST in order
to take advantage of the new DC electric arc furnace, ladle
refining station and vacuum tank degassing unit installed as part
of PST's modernization program. These new facilities, with their
lower cost, higher quality ingots, replaced BethForge's existing
steelmaking facility during 1995.
CENTEC Roll Corporation has a
facility for the production of centrifugally cast rolls located
in Bethlehem, Pennsylvania.
BethShip, Inc. has a ship
repair yard at Sparrows Point, Maryland. A dry dock facility for
the repair and inspection of offshore drill rigs and other
vessels at Port Arthur, Texas, was sold during 1995.
General
While Bethlehem's principal
operations and facilities are adequately maintained, they are of
varying ages, technologies and operating efficiencies. Bethlehem
believes that most of its operations and facilities currently are
competitive with the operations and facilities of its principal
competitors. Bethlehem will continue to make capital expenditures
to improve and maintain the competitiveness of its operations and
facilities. See "ITEM 1. BUSINESS--General--Capital
Expenditures" of this Report for a discussion of
Bethlehem's capital expenditures.
All principal operations and facilities are owned in fee by Bethlehem except for two continuous casters at the Sparrows Point Division and the Burns Harbor Division and a coal cleaning and processing facility at High Power Mountain in West Virginia, each of which is being leased. As discussed in Note E to the Consolidated Financial Statements, Bethlehem capitalized the expenditures related to the leases for two continuous casters and financed the construction of two new hot-dip galvanizing lines at its Burns Harbor and Sparrows Point Divisions. These two facilities are pledged as collateral for the borrowings.
| Business  Other Items |
Investor Relations
Business
Units Commercial Information Environment History Vision Statement Public Affairs Research |