Bethlehem Steel Celebrates New Cold 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
SPARROWS POINT, Md.,September 21, 2000 - Calling the new cold sheet mill at Bethlehem Steel Corporation's Sparrows Point Division a "monumental strategic investment," the steelmaker's chairman said the corporation can now supply the highest end of the cold sheet product range "to provide superior products, services and solutions to our customers."
Duane R. Dunham, Bethlehem's new chairman, president and chief executive officer, told about 300 government officials, customers, suppliers and employees that "this new mill reinforces Bethlehem's commitment to operational excellence that supports our customers with the highest quality products. This monumental strategic investment should help Bethlehem increase stockholder value by making the corporation a key player in the most demanding markets for cold rolled and coated sheet products at significantly lower cost."
The new cold mill, known at Sparrows Point as the Field of Dreams, will produce cold rolled sheets primarily for the metal construction and appliance industries. Sparrows Point has long been a leading supplier to the metal construction industry, beginning with its pioneering production and patenting of the zinc/aluminum coated Galvalume(TM). The new cold mill is part of more than $600 million invested in Sparrows Point since 1997.
Drawing parallels to the 1989 hit movie Field of Dreams, Mr. Dunham told of how, like Ray Kinsella as played by Kevin Costner, the employees of Sparrows Point "pursued their dream no matter how much effort it took. 'Go the distance,' players were told." The Bethlehem executive was referring to partnership and comprehensive cost-reduction initiatives implemented by Sparrows Point management and union leadership that resulted in Bethlehem's Board of Directors authorizing the new mill to be built at Sparrows Point.
In the movie, Mr. Dunham said, voices called to the character Ray Kinsella to build the baseball diamond by saying, "'If you build it, they will come.' We've heard those same words from our customers who have been asking us to become a leader in providing the highest quality cold rolled and coated sheet products. They told us, 'If you build it, we will come.' Well, it's now built and ready to serve you."
Gauge of the new mill's output ranges from .010 to .100. Material in the thin-to-mid range of gauge will be used in prepainted roofing panels and metal siding, steel studs, exposed lighting fixtures and metal furniture. Material in the heaviest range is being marketed for access flooring systems, air conditioning ductwork and large vehicles like buses.
The mill is capable of pickling 1.7 million tons annually, with annual cold rolled capacity of about 1.5 million. About one million tons of annual output will be coated before shipment to the customer. About 850,000 tons annually will be coated at Sparrows Point's Galvalume (TM) or galvanized coating lines installed in 1993. About 150,000 tons will be shipped for galvanized coating at Double G coatings in Jackson, Miss., a joint venture between Bethlehem and National Steel.
The new mill employs about 300 people who were extensively trained during the past year to operate the highly sophisticated mill. Training was provided by Voest Alpine Industries (VAI), the provider of the new mill's equipment. VAI has extensive world-wide cold sheet mill operating experience and designed a customized training package to ensure the smooth start-up and efficient operation of the new mill. "Bethlehem Steel has been an important part of Maryland's economy and the Baltimore community for generations," said Parris Glendening, Governor of Maryland. "This new state-of-the-art facility will ensure that thousands of good-paying, family supporting jobs remain here in Maryland, and Bethlehem Steel will continue to have a significant presence at Sparrows Point. Thanks to the hard work and commitment of the Maryland Delegation, Bethlehem Steel and its chairman Duane Dunham, the company will begin a new era in providing world-class, quality steel products."
Van R. Reiner, president of the Sparrows Point Division, thanked the state, its Department of Business & Economic Development and Baltimore County "for economic incentives and infrastructure preparation that helped make this new mill become a reality at this location. We also recognize the assistance from Baltimore Gas and Electric which has partnered with Sparrows Point for our mutual success."
Partnership for success was also a theme of Tom Conway, secretary of the basic steel conference of the United Steelworkers of America, who reminded the audience that the Sparrows Point steelworkers "recognized the importance of the new mill and worked hard to make it a reality. I am confident they will work even harder to make the new mill a success."
Also participating in today's ceremony were Congressman Ben Cardin and Baltimore County Executive C.A. "Dutch" Ruppersberger.
The cold mill construction, begun in spring 1998, was completed in May 2000. Ramp up has been under way since this spring, and full commercial production will be achieved by the end of this year. As previously announced in October 1997 when the new cold mill was authorized by Bethlehem's board of directors, the cold mill that has operated since the 1950s will be permanently closed when full commercial production is achieved later this year. "That mill served Bethlehem long and well. Our employees were able to take the principles of cold rolling learned in that facility and then greatly expand their expertise and precision by working with the new mill," said Sparrows Point's Mr. Reiner.
Primary contractors for the construction were VA Technologie AG, Linz, Austria for the major mill equipment and lines, and Fluor Daniel S.C., a subsidiary of Fluor Corp., for the engineering and procurement for the facility and its construction.