AK Steel's Middletown (OH) Works Blast Furnace Experiences Incident
WEST CHESTER, Ohio, June 24, 2013
WEST CHESTER, Ohio, June 24, 2013 /PRNewswire/ --AK Steel Corporation (NYSE:
AKS) said today that the blast furnace at its Middletown (OH) Works facility
experienced a mechanical failure in the charging apparatus internal to the
furnace on June 22, 2013. The company said that there were no injuries and it
is continuing to assess the situation and investigate the root cause of the
The company said that it has a contingency plan in place and is executing the
plan. The blast furnace was taken offline to prevent any damage to the
furnace and to position the furnace for the start-up once the repairs are
completed. Prior to the completion of the repairs, the company will utilize
its Butler (PA) Works electric arc furnace and its Ashland (KY) Works blast
furnace and, to the extent necessary, purchase merchant carbon slabs to
service its customers.
At this time, the company does not have a specific estimate of the cost or an
exact date for completion of the repairs, though it currently expects to
complete the repairs as early as sometime in July, though the repairs may be
completed later in the third quarter. The company noted that it maintains
property damage and business interruption insurance, and it currently expects
that its uninsured losses will be between $10 million and $27.5 million. The
company currently expects this outage will impact both the second and third
quarter shipments and financial results. The company will provide an update
to this incident in its scheduled earnings conference call to be held on July
23, 2013 at 11:00 a.m. Eastern Time.
Safe Harbor Statement
The statements in this release with respect to future results reflect
management's estimates and beliefs and are intended to be, and hereby are
identified as "forward-looking statements" for purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Words
such as "expects," "anticipates," "believes," "intends," "plans," "estimates"
and other similar references to future periods typically identify such
forward-looking statements. The company cautions readers that such
forward-looking statements, including those estimates with respect to the
timing and cost of repairing the blast furnace at the Middletown Works
facility, involve risks and uncertainties that could cause actual results to
differ materially from those currently expected by management, including those
risks and uncertainties discussed in the company's Annual Report on Form 10-K
for the year ended December 31, 2012, its Quarterly Report on Form 10-Q for
the quarter ended March 31, 2013, and in Current Reports on Form 8-K filed
with or furnished to the Securities and Exchange Commission. Except as
required by law, the company disclaims any obligation to update any
forward-looking statements to reflect future developments or events.
AK Steel produces flat-rolled carbon, stainless and electrical steels,
primarily for automotive, infrastructure and manufacturing, construction and
electrical power generation and distribution markets. The company employs
about 6,100 men and women in Middletown, Mansfield, Coshocton and Zanesville,
Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its
corporate headquarters in West Chester, Ohio. Additional information about AK
Steel is available on the company's web site at www.aksteel.com.
AK Tube LLC, a wholly-owned subsidiary of AK Steel, employs about 300 men and
women in plants in Walbridge, Ohio and Columbus, Indiana. AK Tube produces
carbon and stainless electric resistance welded (ERW) tubular steel products
for truck, automotive and other markets. Additional information about AK Tube
LLC is available on its web site at www.aktube.com.
AK Coal Resources, Inc., another wholly-owned subsidiary of AK Steel, controls
and is developing metallurgical coal reserves in Somerset County,
Pennsylvania. AK Steel also owns 49.9% of Magnetation LLC, a joint venture
headquartered in Grand Rapids, Minnesota, which produces iron ore concentrate
from previously mined ore reserves.
SOURCE AK Steel
Contact: Media - Barry L. Racey, Director, Government and Public Relations.
(513) 425-2749; Investors - Albert E. Ferrara, Jr., Senior Vice President,
Corporate Strategy and Investor Relations, (513) 425-2888
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