Bethlehem Steel Corporation Announces the Closure of the Burns Harbor Division Slab Mill
Bethlehem Steel Corporation
For Immediate Release
BETHLEHEM, Pa., November 15, 2000 -- Bethlehem Steel Corporation announced today that it plans to permanently close the slab mill and cease ingot making at its Burns Harbor Division. Bethlehem said that it will record a restructuring charge of $6 million in the fourth quarter 2000 in connection with this decision.
Duane R. Dunham, chairman, president and chief executive officer said, " The recent investment in a new wide-slab caster at our Sparrows Point Division and ingot making capability at the Coatesville operation enable us to make all of the products needed to serve all of the markets we want to serve, including specialty plates, without the ingot teeming and slabbing operations at Burns Harbor. These actions will help reduce costs and improve our overall competitiveness going forward. Cost reductions can be achieved by fully utilizing our low-cost cast slab production at Sparrows Point, and increasing ingot production at Coatesville."
About 100 employees from the operations at Burns Harbor may be affected by the closing. Some of these employees will be reassigned within Burns Harbor and others may be able to retire. Mr. Dunham also said that, "We regret the impact of this decision on the affected employees and their families, but it is the right decision for Bethlehem and its stockholders."
In accordance with the labor agreement between Bethlehem and the United Steelworkers of America, Bethlehem Steel informed the union today of its intent to permanently close the slab mill. A Worker Adjustment and Retraining Notification (WARN) Act notice has also been issued to comply with federal law requiring advance notification of no less than 60 days in advance of the closing.