Steel giant files for bankruptcy

Bethlehem Steel, the second-largest steel producer in the U.S., has filed for bankruptcy.

The move is designed to stabilize its finances and develop a plan to return to profitability. In the meantime, the company has secured a US$450-million loan from GE Capital to meet operating needs. Bethlehem will continue to produce steel during the restructuring.

“This step is imperative to preserve not only the company’s future but the future of our workforce,” says Chairman Robert Miller, Jr.

Despite cutting roughly $300 million in costs since mid-1998, the company was unable to cope with low steel prices.

Bethlehem’s is the 21st bankruptcy filing by a U.S. steel manufacturer since 1998, when foreign companies began flooding the North American market. Since that time, the company’s revenue has dropped US$1.3 billion annually.

During the first nine months of 2001, revenue totalled $2.6 billion and the company shipped 6.1 million tons of steel. Its principal markets are automotive, construction, machinery and equipment, appliance, container, rail and energy.