LTV Begins Restructuring; Announces Intention to Close Hot Rolled Steel Facility

Apr 11, 2001, 01:00 ET from LTV Corporation

    CLEVELAND, April 11 /PRNewswire/ -- The LTV Corporation
 (OTC Bulletin Board:   LTVCQ) today began to implement a restructuring plan to
 restore its integrated steel operations to viability and preserve high quality
 manufacturing jobs within its communities.
     "When fully implemented, the restructuring plan is designed to enable LTV
 Steel to operate successfully in the real economic world of both low-cost
 domestic and unfair foreign competition.  The future of our company,
 employees, retirees and communities demands that we make the changes necessary
 to break out of the exhausting cycle of crisis and failure which nearly caused
 the permanent closure of our company less than four months ago," said William
 H. Bricker, chairman and chief executive officer of The LTV Corporation.
     As an initial step, LTV today informed officials of the United
 Steelworkers of America that it intends to permanently close the Direct Hot
 Charge Complex (DHCC) and the associated C-1 blast furnace, located on the
 West Side of the Cleveland Works.  The DHCC, which has an annual raw steel
 capacity of about 2 million tons, consists of a basic oxygen furnace
 steelmaking shop, a continuous slab caster and hot strip mill.  The facilities
 employ about 800 hourly and 100 salaried people.  Approximately half of the
 affected employees will be eligible to retire.
     Closure of these facilities will result in cost savings of $700 million
 over the next five years.
     "The hot rolled steel produced by the DHCC carries our lowest selling
 prices and cannot compete in the marketplace," said John D. Turner, executive
 vice president and chief operating officer.  Mr. Turner said that LTV couldn't
 justify investments in facilities that do not generate a positive return on
 the investment.
     LTV said that it is prepared to meet with the USWA concerning the effects
 of the intended shutdown.  The company also said that affected employees would
 be eligible for job opportunities at other LTV Steel facilities.
     LTV also announced that it has closed its $700 million debtor-in-
 possession financing which will supplement current cash and finance the
 company during the initial phases of the restructuring.
     "LTV has come a long way since December 27 when we faced the shutdown of
 an entire company and economic devastation for over 100,000 people.  As a
 result of the heroic efforts of our employees, our communities, the
 Steelworkers and our elected representatives, we now have the financial means
 to restructure LTV Steel and create a stable, profitable and successful
 company.  Our goal is to continue to serve as a meaningful part of our
 communities by providing high quality jobs and benefits for our people and
 opportunities for the future," Mr. Bricker said.
     The LTV Corporation is a manufacturing company with interests in steel and
 metal fabrication.  LTV's Integrated Steel segment is a leading producer of
 high-quality, value-added flat rolled steel, and a major supplier to the
 transportation, appliance, electrical equipment and service center industries.
 LTV's Metal Fabrication segment consists of LTV Copperweld, the largest
 producer of tubular and bimetallic products in North America and VP Buildings,
 a leading producer of pre-engineered metal buildings for low-rise commercial
 applications.
     This press release includes forward-looking statements.  Our uses of the
 words "outlook", "anticipates," "believes," "estimate," "expect" and similar
 words are intended to identify these statements as forward looking.   These
 statements represent our current judgement on what the future holds.  While
 the Company believes them to be reasonable, a number of important factors
 could cause actual results to differ materially from those projected.  These
 factors include relatively small changes in market price or market demand;
 changes in domestic capacity; changes in raw material costs; increased
 operating costs; loss of business from major customers, especially for high
 value-added product; availability of post petition financing; negative market
 and credit impact from the Chapter 11 filing; unanticipated expenses;
 substantial changes in financial markets; labor unrest; unfair foreign
 competition; major equipment failure; unanticipated results in pending legal
 proceedings; difficulties in implementing information technology; and other
 factors.
 
 

SOURCE LTV Corporation
    CLEVELAND, April 11 /PRNewswire/ -- The LTV Corporation
 (OTC Bulletin Board:   LTVCQ) today began to implement a restructuring plan to
 restore its integrated steel operations to viability and preserve high quality
 manufacturing jobs within its communities.
     "When fully implemented, the restructuring plan is designed to enable LTV
 Steel to operate successfully in the real economic world of both low-cost
 domestic and unfair foreign competition.  The future of our company,
 employees, retirees and communities demands that we make the changes necessary
 to break out of the exhausting cycle of crisis and failure which nearly caused
 the permanent closure of our company less than four months ago," said William
 H. Bricker, chairman and chief executive officer of The LTV Corporation.
     As an initial step, LTV today informed officials of the United
 Steelworkers of America that it intends to permanently close the Direct Hot
 Charge Complex (DHCC) and the associated C-1 blast furnace, located on the
 West Side of the Cleveland Works.  The DHCC, which has an annual raw steel
 capacity of about 2 million tons, consists of a basic oxygen furnace
 steelmaking shop, a continuous slab caster and hot strip mill.  The facilities
 employ about 800 hourly and 100 salaried people.  Approximately half of the
 affected employees will be eligible to retire.
     Closure of these facilities will result in cost savings of $700 million
 over the next five years.
     "The hot rolled steel produced by the DHCC carries our lowest selling
 prices and cannot compete in the marketplace," said John D. Turner, executive
 vice president and chief operating officer.  Mr. Turner said that LTV couldn't
 justify investments in facilities that do not generate a positive return on
 the investment.
     LTV said that it is prepared to meet with the USWA concerning the effects
 of the intended shutdown.  The company also said that affected employees would
 be eligible for job opportunities at other LTV Steel facilities.
     LTV also announced that it has closed its $700 million debtor-in-
 possession financing which will supplement current cash and finance the
 company during the initial phases of the restructuring.
     "LTV has come a long way since December 27 when we faced the shutdown of
 an entire company and economic devastation for over 100,000 people.  As a
 result of the heroic efforts of our employees, our communities, the
 Steelworkers and our elected representatives, we now have the financial means
 to restructure LTV Steel and create a stable, profitable and successful
 company.  Our goal is to continue to serve as a meaningful part of our
 communities by providing high quality jobs and benefits for our people and
 opportunities for the future," Mr. Bricker said.
     The LTV Corporation is a manufacturing company with interests in steel and
 metal fabrication.  LTV's Integrated Steel segment is a leading producer of
 high-quality, value-added flat rolled steel, and a major supplier to the
 transportation, appliance, electrical equipment and service center industries.
 LTV's Metal Fabrication segment consists of LTV Copperweld, the largest
 producer of tubular and bimetallic products in North America and VP Buildings,
 a leading producer of pre-engineered metal buildings for low-rise commercial
 applications.
     This press release includes forward-looking statements.  Our uses of the
 words "outlook", "anticipates," "believes," "estimate," "expect" and similar
 words are intended to identify these statements as forward looking.   These
 statements represent our current judgement on what the future holds.  While
 the Company believes them to be reasonable, a number of important factors
 could cause actual results to differ materially from those projected.  These
 factors include relatively small changes in market price or market demand;
 changes in domestic capacity; changes in raw material costs; increased
 operating costs; loss of business from major customers, especially for high
 value-added product; availability of post petition financing; negative market
 and credit impact from the Chapter 11 filing; unanticipated expenses;
 substantial changes in financial markets; labor unrest; unfair foreign
 competition; major equipment failure; unanticipated results in pending legal
 proceedings; difficulties in implementing information technology; and other
 factors.
 
 SOURCE  LTV Corporation

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http://www.ltvsteel.com