BIRMINGHAM STEEL CORPORATION ANNOUNCES START-UP OF MEMPHIS MELT SHOP.BIRMINGHAM, Ala.--(BUSINESS WIRE)--Nov. 21, 1997--Birmingham Steel Corporation (NYSE NYSE See: New York Stock Exchange :BIR BIR British Institute of Radiology BIR Bureau of Internal Revenue BIR Bureau of International Recycling BIR Baculovirus IAP Repeat BIR Biomedical Imaging Resource BIR Bureau of Intelligence and Research (US State Department) ) today announced that start-up operations had begun at its new melt shop in Memphis, Tennessee. The Company announced that it successfully melted the first heat of steel production last night. The melt shop, which cost approximately $210 million, will produce high-quality semi-finished steel billets for the Company's special bar quality (SBQ SBQ Sociedade Brasileira de Quimica (Portugese) SBQ Special Bar Quality ) bar and rod rolling mills in Cleveland, Ohio. Robert A. Garvey, Chairman and Chief Executive Officer of Birmingham Steel, commented, "We are pleased to report the on-time operational start-up of the new Memphis melt shop. This project, which has been under construction since late 1995, is a key component for improving the earnings performance of our SBQ division. Once the melt shop reaches full annual production of 1.0 million tons, we expect billet costs for the SBQ division will decrease substantially. We are anticipating a steady ramp-up of production at Memphis, and expect the melt shop will be operating at a rate of 75% of capacity by June 1998. "One-half of the raw material feedstock for the new melt shop will be direct reduced iron Direct reduced iron is produced from iron ore powder through heating and chemical reduction by natural gas. While this is in general a more expensive process than reducing the ore in a blast furnace, there are several factors which can make it economical: Birmingham Steel operates in the mini-mill sector of the steel industry and conducts operations at facilities located across the United States. The Company specializes in producing steel reinforcing bar, merchant products and SBQ (special bar quality) bar, rod and wire. The common stock of Birmingham Steel Corporation is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "BIR." Safe Harbor statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: With the exception of historical information, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties including, but not limited to, economic conditions, market demand factors, unanticipated start-up and operating expenses and problems, and financing considerations. For additional discussion, refer to the section on Risk Factors in the Company's most recently filed SEC form 10-Q. CONTACT: Birmingham Steel Corp., Birmingham J. Daniel Garrett, 205/970-1213 |
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