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AK Might Stop Making Steel after 103 Years |
Thursday, September 4, 2003 10:55:58 AM - Middletown Ohio |
Companies that make steel straight from iron ore "have no future," said Robert Crandall, a senior economic fellow at the Brookings Institution, a Washington, D.C., think tank. (Source: Reuters)
AK Steel is considering shutting down its carbon steelmaking operations because the cost of complying with new emission standards could run up to $80-$100 million at Middletown Works.
Alan McCoy, spokesperson for AK Steek, said closing AK Steel production is as 'real as ever.'
AK would continue to operate in a diminished capacity. Steel Slabs would be purchased, rather than for value add services provided by the company.
AK Steel has struggled since the 1980s with cheap imports as well as high retiree benefits and health-care expenses. Many steel producers have been forced into bankruptcy.
AKS is a fully integrated producer of flat-rolled carbon, stainless and electric steels, concentrating on the production of coated, cold-rolled and hot-rolled carbon steel. For the six months ended 6/30/03, revenues fell 4% to $2.02 billion. Net loss from continuing operations applicable to Common totaled $119.0 million, up from $3.1 million. Revenues reflect lower flat-rolled selling prices. Higher loss also suffered from the absence of a $24.1 million gain on the sale of Anthem stock. (Source: Yahoo Finance)
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