April 13, 2006 — AK Steel’s wholly-owned subsidiary, AK Tube LLC, has selected its Walbridge, Ohio, plant for an $8.5 million capital investment to increase production capacity.
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New U.S. Environmental Protection Agency standards designed to lower particulate matter emissions from heavy duty diesel trucks become effective January 1, 2007.
The new standard will result in higher peak exhaust temperatures, requiring the use of stainless steel.
As a result, diesel engine manufacturers have specified large-diameter stainless tubing for many of the exhaust components of the new engines.
Historically, such components have utilized bare and aluminum-coated carbon steel tubing.
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The investment will allow AK Tube to produce large-diameter stainless tubing that will help heavy duty truck manufacturers meet new EPA standards for diesel vehicle emissions. The new standards, which become effective January 1, 2007, have led diesel engine manufacturers to specify large-diameter stainless tubing for many of the exhaust components of their new engines.
The capital investment includes a resistance-weld tube mill and associated equipment. It will be housed in AK Tube's existing 330,000 square foot facility in Walbridge, near Toledo. The company said installation of the new equipment would be completed by the end of July, with tube production beginning in the third quarter.
The company said that the project will receive assistance from the Ohio Department of Development in the form of a $75,000 grant, as well as $170,000 in training funds from the Ohio Investment Training Program. The Walbridge plant employs 214 men and women, including 146 hourly production and maintenance employees, and serves as headquarters for AK Tube LLC.
"We applaud Governor Taft and his administration for continuing to support the manufacturing base of Ohio's economy," said James L. Wainscott, chairman, president and CEO of AK Steel. "This new project will both preserve good manufacturing jobs and help improve the environment."
With plants in Walbridge, Ohio, and Columbus, Ind., AK Tube is a leading supplier of carbon and stainless electric resistance welded (ERW) tubing products for truck exhaust, hydroforming, air handling, outdoor furniture and automotive markets.
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.