CSR RINKER AND BETHLEHEM STEEL ANNOUNCE JOINT VENTURE TO EXPAND USE OF STEEL FRAMING
For Immediate Release
Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
ORLANDO, Fla., April 25, 1997 -- CSR Rinker, the largest building materials company in Florida, and Bethlehem Steel Corporation announced today that they have entered into a joint venture to expand the use of steel in residential and light commercial building construction.
Under the terms of the agreement, Bethlehem Steel will purchase 45 percent of Steel Construction Systems, a CSR Rinker subsidiary. The joint venture will continue to be known as Steel Construction Systems.
"Bethlehem's purpose in entering into this joint venture is to increase the overall market for steel by promoting its use in residential and light commercial construction," said Curtis H. Barnette, chairman of Bethlehem Steel.
William L. Snyder, chief executive officer of CSR Rinker, noted that steel is beginning to make serious inroads into wood's former dominance in home construction. "As the numerous advantages of using steel in interior framing and roof trusses become more widely known, the market for these products is expected to increase at a rapid pace. Entering into this joint venture with Bethlehem Steel is one of the ways in which CSR Rinker plans to grow this market," said Mr. Snyder.
Mr. Barnette added that the venture with CSR Rinker is consistent with Bethlehem's philosophy of growing by "edging out" -- investing in opportunities that are closely aligned with the steel industry.
The joint venture will expand Steel Construction Systems' current production lines of steel framing components to incorporate the design and fabrication of steel roof trusses for new home construction in the Florida market.
CSR Rinker is a major supplier of aggregate, cement, readymix concrete, concrete block, brick, concrete pipe, drywall, acoustical ceiling tile and a host of related building materials. With over 150 locations and 3,000 employees, CSR Rinker is one of the business units comprising CSR America, Inc., one of the largest producers of concrete, concrete pipe and concrete block in the United States. CSR America employs more than 6,000 people at over 190 sites in 27 states and is a subsidiary of CSR Limited Australia, one of the world's largest international building materials companies, with sales in excess of $5 billion.
Bethlehem Steel is the second largest steel producer in America with revenues of $4.7 billion on shipments of 8.8 million tons of steel products in 1996.
Steel for the new joint venture will come from Bethlehem's Sparrows Point, Md., Division, located near Baltimore. Sparrows Point has long been a supplier of coated sheet steel to metal building and components manufacturers, including those who make pre-engineered structures, and roofing and siding for commercial, residential, industrial and agricultural markets. Sparrows Point entered the multi-billion-dollar framing market as a supplier of prime galvanized sheet last year. Based on the potential for this market, Sparrows Point converted one of its four coating lines to supply galvanized steel to framing manufacturers.
Steel Construction Systems is located on a six-acre tract near the Orlando International Airport and currently produces interior, non-load-bearing steel studs and track, metal lath, and light-gage steel framing for Florida's fast growing construction market.
CONTACT: For CSR Rinker -- Bob Wolf 215-957-9871
For Bethlehem Steel -- Art Roth 610-694-3711