Bethlehem Steel to Spend
$300 Million for
New Cold Rolling Mill at Sparrows Point
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., October 29, 1997 -- Bethlehem Steel Corporation's board of directors has authorized a capital appropriation of about $300 million to construct a new cold rolling mill complex at its Sparrows Point, Md., Division, it was announced today by Curtis H. Barnette, chairman and chief executive officer.
"This major investment by Bethlehem in Sparrows Point's future is part of the Division's comprehensive plan to achieve and sustain a competitive rate of return on its assets. Sparrows Point is one of Bethlehem Steel's core facilities representing about one-third of its total shipments and revenues. Over the past few years, this Division has made significant improvements in its competitiveness and is profitable. Sparrows Point has an excellent tidewater location and a number of highly competitive facilities, such as its primary iron and steelmaking operations, a modern hot strip mill and two new coating lines. The new cold rolling mill complex, which is scheduled to begin production in the fourth quarter of 1999, is expected to help Sparrows Point lower its costs, improve its quality and further enhance its capabilities to meet its customers' expectations," he said.
Duane R. Dunham, president, Sparrows Point Division, said:
"Installing new cold mill facilities will be important for the Division, its customers and its employees. The new cold mill will produce both cold rolled product for trade customers and cold rolled for our coating lines, as does the existing mill. A new, state-of-the-art mill will allow us to significantly improve quality, reduce costs and make us a key supplier in premium cold rolled products. Under our agreement with the United Steelworkers of America, a portion of the benefits to be realized from this new complex will begin shortly after orders for the new equipment are placed and will progressively increase until the full amount of the benefits is realized following start up of the new complex."
The decision to locate the new mill on site at Sparrows Point comes after months of consideration of alternative sites in other states. Significant factors in the decision were the cumulative benefits to the entire Division, the comprehensive initiatives and the cost reduction plan developed by Sparrows Point management, which included significant participation by the United Steelworkers of America.
"We have the cooperation of our employees and the union whose leadership both at Sparrows Point and in Pittsburgh is vitally interested in enhancing the competitiveness of this Division. We are pleased with this joint commitment to the future of Sparrows Point," said Mr. Barnette.
"We are also grateful for the support received from federal, state and Sparrows Point-area government officials resulting in assistance to help build this new mill and train its employees. We have a public/private partnership for this project at Sparrows Point, and we particularly appreciate the interest and support of Governor Glendening, U.S. Senators Sarbanes and Mikulski, U.S. Congressmen Ehrlich and Cardin, and Baltimore County Executive Ruppersberger," Bethlehem's chairman said.
Consistent with its corporate objective of being a good corporate citizen, Bethlehem will install highly efficient emission control equipment that is more technologically sophisticated than equipment in use at the existing cold mill. The new emission control equipment will meet the latest and most stringent regulations.
The new complex will include a continuous pickling line, cold reducing mill, annealing facilities, a skin pass mill and related coil handling, storage and shipping facilities. Detail design engineering will begin immediately, and equipment will begin to be ordered in January 1998. Construction will begin in the spring of 1998, and equipment installation will begin in early 1999.
Hot-rolled steel from Sparrows Point's hot strip mill will be used to supply the new cold mill complex. Cold-rolled products from Sparrows Point are used in containers, tubing, machinery and service centers. Cold-rolled steel is also further processed at Sparrows Point's coating lines to produce galvanized and Galvalume products for the construction and other industries.
"We believe that Bethlehem Steel will be well served by this value-adding facility that represents another significant step toward Bethlehem's goal of being the Premier Steel Company," Mr. Barnette, Bethlehem's chairman, said.