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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
September 11, 1997
BAR TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
Delaware 333-04254 13-3753384
(State or other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
227 Franklin Street, Suite 300 15901
Johnstown, PA (Zip Code)
(address of principal
executive offices)
Registrant's telephone number, including area code (814) 533-7200
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Item 5.
[BARTECH LOGO]
FOR IMMEDIATE RELEASE BarTech
227 Franklin Street
Suite 300
Johnstown, PA 15901
Contact: Frederick L. Deichert, CFO
Phone: (814) 533-7200
Fax: (814) 533-7220
BARTECH ANNOUNCES $30 MILLION CAPITAL INVESTMENT PROGRAM
o Bulk of spending earmarked for BarTech's Johnstown, PA and Lackawanna NY
facilities
o Program funded through equity investment by Blackstone Capital Partners
II Merchant Banking Fund L.P. and its affiliates and Veritas Capital,
Inc.
o Bank Line of Credit also enhanced to provide additional liquidity
o Proceeds from sale of Johnstown, PA property also earmarked for capital
projects in Johnstown
September 11, 1997 - Johnstown, PA Thomas N. Tyrrell, President and CEO, today
announced a capital program which will significantly enhance the productive
capacity of the Company's steelmaking facilities. The announcement comes on the
first year's service anniversary for Bar Technologies Inc.'s new management
team.
Mr. Tyrrell stated "over the next two years, BarTech will invest over $30
million in its steelmaking facilities. This is expected to provide market
growth opportunities and improve operating performance."
Approximately $14 million is expected to be spent on improvements to the
Johnstown PA primary mill facility to produce enhanced machinability (including
leaded) and bearing steel grades. As a result of the Johnstown capital program,
the Company expects to significantly increase its liquid steel output beginning
in fourth quarter 1998. Mr. Tyrrell remarked "the Johnstown steelmaking
facility has historically produced a wide variety of steel grades. The
Johnstown investment program will reinforce our core competency in this area."
The additional production will be used principally to serve BarTech's key cold
finished bar customers, including the Company's Bliss & Laughlin Industries
Inc. subsidiary. Mr. Tyrrell commented "a significant portion of the enhanced
capacity will also be used to further BarTech's growth in the forging and
automotive component markets."
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The completion of this project is expected to result in increased production
levels for the Johnstown operations which could result in the creation of up to
70 new manufacturing jobs in the area. BarTech currently employs 180 workers at
its Johnstown primary operations.
An additional $14 million is earmarked for several projects at the Lackawanna
NY 13" bar mill. Of greatest significance is a rolling mill electrical control
system, to be installed by ABB Industrial Systems as part of BarTech's
productivity partnership with ABB. Mr. Tyrrell stated "the new control system
is expected to improve mill productivity and yields, allowing us to better
serve our customers. The 13" mill will finally have an electrical control
system to match its world class mechanical capabilities."
He added "the time line for completion of this project will minimize mill
downtime and sustain customer service." As a result, much of the work will be
performed off-line, with installation occurring during future scheduled
maintenance outages.
The Lackawanna operation recently added 35 employees with the August startup of
a fourth production shift and currently employs 290 workers at the Lackawanna
13" mill.
Mr. Tyrrell stated "these investments underscore BarTech's commitment to
steelmaking in Johnstown and Lackawanna. Our workforce and the local
communities will benefit by the opportunities these expansion projects will
bring."
A further $2 million has been earmarked for various projects at the Company's
Bliss and Laughlin Industries, Inc. cold-finishing subsidiary.
The $30 million is being provided through an equity investment made by
BarTech's principal owners, Blackstone Capital Partners II Merchant Banking
Fund L.P. and its affiliates and Veritas Capital, Inc. Mr. Tyrrell remarked "we
are pleased with this vote of confidence from our shareholders, and look
forward to realizing the returns on this investment."
In connection with the investment, BarTech also announced that its bank group
has agreed to enhancements to its existing line of credit facility which will
provide an additional $15 million of available borrowing capacity.
The Company also announced that it has reached tentative agreement with various
private and governmental debtholders to use proceeds from the sale of a former
billet yard in Johnstown, PA for capital improvements at its Johnstown
facility. The property is being sold to a private developer for construction of
a commercial strip shopping center. Mr. Tyrrell noted "when completed, the sale
will be a win-win situation for all parties. The community benefits with new
jobs, the development of vacant property and direct investment in the
community's manufacturing base. We will continue working with local officials
to find productive, job creating uses for similar properties."
Mr. Tyrrell also stated "We appreciate the ongoing support of Johnstown,
Cambria County, the Commonwealth of Pennsylvania, Lackawanna, Erie County and
the State of New York in connection with these transactions."
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Separately, the Company announced that its corporate office, including a
limited number of salaried headquarters' employees would be relocated. Mr.
Tyrrell stated "we have decided to move a limited number of executives and
support staff to a region more central to our customer base and manufacturing
facilities to best meet BarTech's overall customer needs. This move will not
impact any salaried or hourly production workers at the Johnstown facility."
The Company will announce the location of its corporate office by the end of
1997.
Forward looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward looking statements
which speak only as of the date hereof. Such risks and uncertainties include,
but are not limited to, general business and economic conditions, competitive
factors such as the availability and pricing of steel, fluctuations in demand,
potential equipment malfunction, and construction and repair delays.
For further information contact:
Fred Deichert, VP Finance and CFO (814) 533-7208
Tom Tyrrell, President and CEO (814) 533-7201
