AK Steel announced that it will likely idle most of its Ashland, Ky., Works beginning late in July or early August, affecting about 750 hourly and salaried employees
The company said the idling is the result of recent announcements by GM and Chrysler of significant production curtailments, as well as the continuing global recession.
“Unfortunately, at these very depressed business levels, we do not have sufficient carbon steel orders to operate both of our blast furnace plants,” said James L. Wainscott, Chairman, President and CEO of AK Steel.
Steel slabs produced at AK Steel’s Ashland Works must be transported approximately 150 miles to the company's Middletown Works for conversion to hot-rolled coils. “The Ashland Works is not capable of producing the full range of slab widths required by our customers, and lacks any rolling facilities,” commented Wainscott. “Thus, the Middletown (OH) Works is the only efficient choice for this very low level of orders.”
The Ashland Works coke plant, which employs about 290 men and women, is currently scheduled to continue operating at a reduced level. The company said the rest of the plant is likely to remain idled at least through the balance of 2009.
"It is our hope that a steady global economic recovery will translate as quickly as possible to the resumption of higher levels of production and elimination of the uncertainty that burdens our employees," said Wainscott.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets. The company employs about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 250 men and women in plants in Walbridge, Ohio, and Columbus, Ind. AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.