Printer Friendly

BETHLEHEM STEEL AND EDS ENTER INTO INFORMATION TECHNOLOGY AGREEMENT

 BETHLEHEM, Pa., Dec. 21 /PRNewswire/ -- Bethlehem Steel Corporation (NYSE: BS) and Electronic Data Systems Corporation (EDS) (NYSE: GME) today announced that they are entering into an information technology partnership agreement.
 Under the agreement, EDS will provide all of Bethlehem's information technology services over the next 10 years.
 This comprehensive agreement is unique in the steel industry because it covers all aspects of information technology from the factory floor at the business units to the mainframes at the corporate offices. EDS will provide Bethlehem with all the necessary resources for data center management, applications development and support, personal computers and telecommunications, and provide additional resources for Bethlehem's existing process control activities.
 In announcing the new agreement, Curtis H. Barnette, Bethlehem's chairman and chief executive officer, said, "EDS is the world leader in providing information technology services. We are very pleased with this partnership and have confidence in EDS's ability to help us achieve a competitive advantage in a tough global steel market."
 Hank Johnston, president of EDS's Manufacturing and Distribution Services division, said, "Our commitment to Bethlehem Steel and our more than 30 years of experience in the information technology industry will allow Bethlehem to accelerate the achievement of its business and technical goals. This comprehensive relationship clearly validates EDS's role as a strategic provider to the manufacturing industry."
 The agreement will enable Bethlehem to provide better service to its customers, the major goal of the partnership, as well as achieve key technical objectives.
 EDS will develop a manufacturing systems architecture and processes that provide Bethlehem with increased access to diverse information technologies and a broad base of critical technical skills, and an improved ability to stay current with rapidly changing technologies. This will result in reduced capital requirements, expanded training opportunities and economies of scale to meet changes in business demands.
 Barnette said establishing the partnership is consistent with Bethlehem's strategy of concentrating on its core steel business. This action reaffirms Bethlehem's renewed emphasis on and commitment to "change" -- that Bethlehem is looking at every aspect of its business, benchmarking against the best, and making changes that will ensure a strong, internationally competitive company for the long term.
 The agreement with EDS, Barnette said, resulted from a detailed study conducted by more than 10 of Bethlehem's senior information technology employees and headed by Dr. Walter N. Bargeron, vice president, technology and quality assurance. The Bethlehem study team was challenged to find better ways for the company to manage its information technology systems. Barnette said the study considered the complete range of alternatives, including the possibility of entering into agreements with other companies that could have provided such services.
 The study team was assisted by two management consulting groups, Price Waterhouse and The Yankee Group, and by outside legal counsel.
 Barnette indicated that the study team has been evaluating alternatives since early 1992 and negotiations were concluded just this past weekend. He said, "The decision to enter into a partnership agreement with EDS was determined to be in the best long-term interest of Bethlehem. The agreement was signed today, and we are making this announcement in accordance with Bethlehem's commitment to advise employees promptly of changes that concern them."
 All of Bethlehem's 450 information technology professionals will be offered the opportunity to join the EDS work force. The changeover is effective Jan. 1, 1993.
 EDS has operations in more than 30 countries, employs more than 70,000 people and reported revenues of $7.1 billion in 1991, making it the leader in meeting the information technology needs of businesses and governments around the globe. EDS's stock is traded on the New York Stock Exchange under the symbol GME .
 /delval/
 -0- 12/21/92
 /CONTACT: Ken Smalling of EDS, 214-661-6188, or H. Von Spreckelsen of Bethlehem Steel, 215-694-3711/
 (BS GME)


CO: Bethlehem Steel Corporation; Electronic Data Systems Corporation ST: Pennsylvania, Texas IN: MNG CPR SU:

MK-CC -- PH022 -- 0105 12/21/92 12:02 PST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 21, 1992
Words:652
Previous Article:NLRB RULING COULD ULTIMATELY FORCE CORPORATIONS TO RESTRUCTURE EMPLOYEE INVOLVEMENT AND QUALITY CIRCLE PROGRAMS
Next Article:MEDIQ/PRN EXPANDS HOME HEALTH CARE MARKET FOCUS
Topics:


Related Articles
PHP HEALTHCARE SIGNS LETTER OF INTENT WITH BETHLEHEM STEEL
PHP HEALTHCARE SIGNS LETTER OF INTENT WITH BETHLEHEM STEEL
UNITED STEELWORKERS OF AMERICA AND BETHLEHEM STEEL CORPORATION COMMENCE NEGOTIATIONS FOR LABOR CONTRACT
BETHLEHEM STEEL ANNOUNCES IMPROVED STEEL SUPPLY FOR BETHFORGE SUBSIDIARY
National, Bethlehem settle.
U.S. STEEL, BETHLEHEM ANNOUNCE INTENT FOR JOINT RESEARCH AGREEMENT
U.S. STEEL GROUP AND BETHLEHEM STEEL CORPORATION ANNOUNCE COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT
BETHLEHEM STEEL REPORTS ON ARBITRATOR'S DECISION IN LABOR AGREEMENT REOPENER
Alpine Group's BMI-France Refractories Unit Enters Into a Multi-Year Agreement
Bethlehem Steel Selects Sterling Commerce as Value-Added Services Provider

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters