PADUCAH UNDER CONSIDERATION AS SITE FOR STEEL MILL OPERATION

PADUCAH, Ky. -- The Paducah area could be site of two major multimillion-dollar steel mill operations that would provide employment to hundreds of people over the next three years.

Birmingham Steel Corp. announced last week that four cities have been selected finalists for a $100 million state-of-the art melt plant to recycle scrap steel.

"We're actually looking at two facilities," said Tom Tyrrell, vice chairman of the company headquartered in Birmingham, Ala. "We're also looking for a site to build a $109 million steel-bar and rod plant."

The company, said Tyrrell, is looking at Cuyahoga Heights, Ohio, near Cleveland, for the steel-bar and rod plant, but it is possible that both plants could be built at one of the other three sites -- Paducah, Erie, Pa., or Conneaut, Ohio.

Tyrrell anticipates that the company will select sites within 30 to 60 days.

"Construction will start in early 1995 with a production date of spring 1996," said Tyrrell.

Birmingham officials have visited the Paducah area on several occasions and have selected a site near the Tennessee Valley Authority's Shawnee Steam Plant in western McCracken County as a potential site.

The site is near a power generating plant, a major river and major rail line, said Harry Ruth, chairman of the Greater Paducah Economic Development Corp.

Ruth said Kentucky is offering some incentives, including a low-interest loan. TVA is offering a favorable rate on electricity and has offered to provide waste treatment for the steel mill.

Ruth said annual salaries at the mill would average in the $35,000 range.