Bethlehem Announces Intention to Cease Operations of the Bethlehem Structural Products structural mill
For Immediate Release
Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
BETHLEHEM, Pa., January 9, 1997 -- On October 30, 1996, Bethlehem Steel reported that its board of directors had approved a comprehensive restructuring plan to improve the corporation's financial performance and stockholder value. At that time, Bethlehem said it planned to operate Bethlehem Structural Products Corporation's structural mill, BethForge, CENTEC and BethShip's Sparrows Point Yard for a period of time while efforts were made to sell them. Bethlehem also said that if these underperforming businesses could not be sold in a scheduled period of time, they would be shut down in an orderly manner and efforts to sell the businesses in total or as individual assets would continue, as appropriate.
Bethlehem Steel's efforts to sell BethForge, CENTEC and the Sparrows Point Yard are ongoing, and negotiations are continuing with qualified buyers for these businesses. Efforts to sell the Bethlehem Structural Products structural mill have been unsuccessful, despite a major marketing program. Therefore, the mill will cease operations during the first quarter of 1997, although shipments from inventory may continue for a period of time. As previously announced, about 900 jobs will be affected, and outplacement assistance will be offered to affected employees.
Bethlehem Steel has issued a notice to the United Steelworkers of America of its intention to cease operations at the Bethlehem Structural Products structural mill. The notice was issued in accordance with the 1993 labor agreement between the company and the union to provide 90 days advance notification of a possible permanent closing of facilities.