AK Steel to Permanently Shut Ashland Works Operations by end-2019

SEATTLE (Scrap Monster):  West Chester, Ohio-headquartered AK Steel announced its decision to close the Ashland Works facility by the end of 2019. The company had idled most of the operations at the facility three years ago, but has been operating a single hot dip galvanizing coating line that primarily services automotive customers. The move is aimed at increasing utilization at its other U.S. facilities. The closing down of Ashland Works operations is expected to generate annual savings of over $40 million, the company press release said.

The decision is in line with company’s strategy to focus on value-added, innovative and differentiated products. The company had shutdown the blast furnace and related steelmaking operations of the Ashland, Kentucky plant in December 2015, following issue of notices to hourly and salaried employees in October 2015. AK Steel had then cited challenging domestic market conditions on account of unfair imports of steel products as the main reason for the shutdown.

AK Steel will work with its customers to transition the coating works at Ashland plant to the company’s other steelmaking capacities. This will ensure that production volumes and customer shipments are unaffected by the closure. Moreover, the company will offer open jobs at its other facilities to around 230 employees currently working in the Ashland Works site.

AK Steel noted that the closure is likely to support company’s longer term growth plans by focusing on its core operations to drive growth and innovation.