Bethlehem Steel Sells Burns Harbor Coke
Oven Battery No. 1 to DTE Energy Services
For Immediate Release
Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
The transaction is valued at about $200 million.
"The sale of No. 1 coke oven battery at Burns Harbor will allow us to further strengthen our financial position and enhance our competitiveness," explained Curtis H. Barnette, chairman and chief executive officer of Bethlehem Steel. "This arrangement allows us to strategically monetize and redeploy assets. With the proceeds from the sale of the coke battery, we plan to repay a $200-million short-term borrowing agreement that we used to complete our acquisition of Lukens Inc. this past May."
Under terms of the sale, Bethlehem will operate the battery for the new owner with its current workforce and purchase its output. The gain on the sale of the battery will be deferred and recognized over the life of the operating and purchasing agreements.
The No. 1 coke oven battery, one of two at the Division, produces about 830,000 tons of coke annually.