Birmingham Steel Corporation Signs Letter of Intent to Sell Cleveland SBQ Facility.Business Editors BIRMINGHAM, Ala.--(BUSINESS WIRE)--Sept. 17, 2001 Corporacion Sidenor, S.A. to Pay for Rehiring of 60 Former AS&W Employees in Anticipation of Restarting Operations at Cleveland 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 it has signed a letter of intent to sell its idled American Steel and Wire (AS&W) special bar quality (SBQ SBQ Sociedade Brasileira de Quimica (Portugese) SBQ Special Bar Quality ) operations in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. , to Corporacion Sidenor, S.A., a SBQ steel producer headquartered in Bilbao, Spain. The terms of the transaction were not disclosed. The transaction is subject to the approval of Birmingham Steel's board of directors and lenders. The Company said the letter of intent anticipates the parties reaching a definitive agreement within approximately two months. Subject to the terms of the letter of intent, Sidenor will reimburse the Company for the cost of rehiring approximately 60 former AS&W workers in order to retain these employees for a restart of operations upon closing of the transaction. On April 24, 2001, the Company gave the 60-day notice of shutdown of the Cleveland operation, pursuant to the Worker Adjustment and Retraining Notification Act The Worker Adjustment and Retraining Notification Act (WARN Act) is a United States law protecting employees, their families, and communities by requiring most employers with 100 or more employees to provide sixty- (60) calendar-day advance notification of plant closings and mass (WARN). At that time, the Company indicated the closing of AS&W would generate annual cash savings of approximately $20 million. The Company ceased production at the facility in June. Birmingham Steel operates in the mini-mill segment of the steel industry. Birmingham Steel's stock 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." Except for historical information, the matters described in the press release are forward-looking statements within the meaning of the safe-harbor provisions of 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. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including economic conditions, market demand factors, equipment breakdowns or failures, the Company's continued compliance with its financing arrangements and its principal debt agreements, as well as other risks described from time to time in the Company's periodic and special filings with the Securities and Exchange Commission. Any forward-looking statements contained in this document speak only as of the date hereof, and the Company disclaims any intent or obligation to update such forward-looking statements. |
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