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BETHLEHEM STEEL CONDITIONALLY APPROVES PLAN FOR BETHLEHEM, PA., DIVISION

 BETHLEHEM, Pa., Jan. 27 /PRNewswire/ -- Bethlehem Steel Corporation (NYSE: BS) today announced that its board of directors had conditionally approved a comprehensive plan to modernize its Structural Products Division in Bethlehem.
 The modernization project would build on the division's present strengths, reinforce its commitment to customers and substantially improve its ability to serve them while reducing costs.
 In making the announcement, Curtis H. Barnette, Bethlehem's chairman and chief executive officer, said, "The Structural Products Division is a leading supplier of quality structural shapes to the construction industry. The division has a strong market presence with a broad product line, a diverse customer base, and an excellent reputation. It is recognized as a leader in technical support and value-added services to its customers. Today's decision will build on these strengths by allowing the division to lower its production costs significantly and enhance its competitiveness versus other producers.
 "Final approval of the modernization program will be contingent on development of a satisfactory business plan that includes a new labor contract and world-class technology. Upon satisfactory resolution of these issues, we would plan to proceed and incorporate the Structural Products Division as a separate, wholly owned subsidiary as we have recently done with Pennsylvania Steel Technologies, our rail-producing business in Steelton, Pa."
 Barnette noted that Bethlehem and the United Steelworkers of America had successfully negotiated a new labor agreement at Pennsylvania Steel Technologies that allows PST to be fully competitive from an employment cost standpoint. He said, "We need a new labor contract at the Structural Products Division similar to the contracts at PST and planned for CENTEC and BethForge, coupled with modernization, to put the Division in a select international group of suppliers of structural shapes. We are hopeful that this can be accomplished soon."
 Tim Lewis, president of the Division, will be responsible for implementation of the modernization program. Although details of the program are still being finalized, the facilities would include a new electric furnace and a continuous caster to produce beam blanks for the finishing mills. As previously announced, the corporation will discontinue its existing blast furnace and basic oxygen furnace operations at Bethlehem during the next few years. In 1990, Bethlehem recorded a restructuring charge in connection with discontinuing these primary hot-metal operations.
 In summarizing Bethlehem's announcement today, Barnette said, "These actions are consistent with Bethlehem's strategy of concentrating on steel, rebuilding our financial strength, and restructuring our businesses as appropriate. The proposed modernization represents a strong commitment to our customers and the community."
 The Structural Products Division produces heavy structural shapes and piling, primarily for the construction industry, and custom-designed special sections. Shipments are approximately 1 million tons annually.
 /delval/
 -0- 1/27/93
 /CONTACT: H.H. Von Spreckelsen, manager, corporate communications of Bethlehem Steel, 215-694-3711/
 (BS)


CO: Bethlehem Steel Corporation ST: Pennsylvania IN: MNG SU:

CC-LJ -- PH026 -- 9769 01/27/93 14:53 EST
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Date:Jan 27, 1993
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