AK Steel buys controlling stake in Cleveland steel
AK Steel purchased a 60 percent interest in a flat-rolled steel
electrogalvinizing facility in Cleveland, formerly known as L-S
Financial terms were not disclosed.
The remaining 40 percent interest will continue to be owned by
International Steel Group. L-S Electro-Galvanizing has been a venture
between the former LTV Corp. and Sumitomo Metal USW Corp. prior to ISG's
acquisition of LTV in April. ISG will continue to operate the plant, now
known as AK-ISG Steel Coating Co.
AK Steel said the acquisition will add about 300,000 tons of additional
coated steel to its production each year. The company said that about half
of its annual shipments are coated products, used by mainly automotive and
"The additional product from this line complements our existing
capacity, making AK Steel the largest supplier of electro-galvanized
flat-rolled steel in the country," said CEO Richard Wardrop.
Middletown-based AK Steel is a manufacturer of flat-rolled carbon,
stainless and electrical steel.