AK Steel To Acquire Severstal Dearborn

                    AK Steel To Acquire Severstal Dearborn

PR Newswire

WEST CHESTER, Ohio, July 21, 2014

WEST CHESTER, Ohio, July 21, 2014 /PRNewswire/ -- AK Steel (NYSE: AKS) said
today that it has signed an agreement to acquire Severstal North America's
integrated steelmaking assets located in Dearborn, Michigan for $700 million
in cash. The acquisition also includes a cokemaking facility and interests in
three joint ventures that process flat-rolled steel products.

Summary of Benefits:

  oIncreased scale enhances company's ability to better serve customers
  oHighly modernized and upgraded steelmaking equipment and facilities
  oAdditional operational flexibility
  oSignificant cost-based synergies
  oImmediately accretive and credit-enhancing

The Dearborn plant, which produces high-quality, flat-rolled steels primarily
for the automotive, construction and appliance markets, completed a
large-scale modernization campaign in 2011. During the campaign, major
capital was invested in new state-of-the-art equipment and various operational
improvements. The Dearborn facility is strategically located in close
proximity to many of AK Steel's customers, and the assets at the steel plant
and the other acquired facilities complement AK Steel's existing carbon steel

"The acquisition of Severstal Dearborn allows us to grow our business
profitability and better serve our customers," said James L. Wainscott,
Chairman, President and CEO of AK Steel. "It furthers our automotive strategy
and strengthens our carbon steelmaking footprint. It also combines great
employees at Dearborn with great employees at AK Steel to strengthen a
terrific company that is better able to compete, and to win, in the global
steel marketplace. We welcome the employees of Dearborn to AK Steel."

The acquisition also increases AK Steel's operational flexibility and enables
significant cost-based synergies. "In addition to operational and
productivity enhancements, the acquisition will create purchasing,
transportation and overhead cost savings," said Mr. Wainscott. "We expect the
transaction to be immediately accretive to our earnings and create significant
long-term value for AK Steel, our employees, customers and shareholders." The
company anticipates annual cost-based synergies of approximately $50 million,
with approximately $25 million realized in the first full year following the
closing of the acquisition.

Dearborn's blast furnace, which was rebuilt in 2007, is among the most
efficient and productive blast furnaces in the world for its size. The plant
also began operating a new pickle line tandem cold mill and a new hot dip
galvanizing line in 2011. Similar to AK Steel's existing carbon steel
operations, the Dearborn plant produces hot and cold rolled sheet and hot dip
galvanized products, as well as other flat-rolled steel products. The plant
employs approximately 1,400 people and is capable of producing about 2.5
million tons of finished steel per year. Upon completion of the acquisition,
AK Steel's annual shipments are expected to exceed 7.5 million tons. AK Steel
said that it intends to utilize all of Dearborn's production units, and the
company has no plans to cease operations at any of its current steelmaking or
steel finishing facilities.

AK Steel intends to finance the acquisition with a prudent combination of debt
and equity securities and remains committed to enhancing its credit profile.
The acquisition is supported by a fully committed bridge financing facility
from Credit Suisse.

The transaction is subject to customary closing conditions and regulatory
approvals. Subject to the conclusion of the regulatory review, the closing is
expected to occur in the fourth quarter of 2014.

Credit Suisse is acting as financial advisor to AK Steel and Weil, Gotshal &
Manges LLP is serving as its legal advisor.

AK Steel Web-Cast Scheduled

AK Steel said that it will provide live listening access on the Internet to a
call with analysts and investors it has scheduled for 11:00 a.m. ET on Monday,
July 21, 2014 to discuss the acquisition detailed in this news release and its
anticipated impact on the company. Access to the web-cast will be available
on the company's web-site at www.aksteel.com. The web-cast will be archived on
the company's web-site until Monday, July 28, 2014 and will be accessible at

Forward-Looking Statements

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 involve
risks and uncertainties that could cause actual results to differ materially
from those currently expected by management, including that the acquisition of
Severstal Dearborn may not be consummated, or may not be consummated in a
timely manner; that regulatory approval not be obtained or may only be
obtained subject to conditions that are not anticipated; that Severstal
Dearborn will not be integrated successfully into AK Steel following the
consummation of the acquisition; and that cost savings, synergies, accretion
to earnings, increased shipments and other anticipated benefits and
opportunities from the acquisition may not be fully realized or may take
longer to realize than expected. In addition, our results and financial
condition and any benefits from the acquisition, if consummated, could be
adversely affected by reduced selling prices, shipments and profits associated
with a highly competitive industry with excess capacity; changes in the cost
of raw materials and energy; the company's significant amount of debt and
other obligations; severe financial hardship or bankruptcy of one or more of
the company's major customers; reduced demand in key product markets due to
competition from alternatives to steel or other factors; increased global
steel production and imports; excess inventory of raw materials; supply chain
disruptions or poor quality of raw materials; production disruption or reduced
production levels; the company's healthcare and pension obligations; not
timely reaching new labor agreements; major litigation, arbitrations,
environmental issues and other contingencies; regulatory compliance and
changes; climate change and greenhouse gas emission limitations; conditions in
the financial, credit, capital and banking markets; the company's use of
derivative contracts to hedge commodity pricing volatility; the value of the
company's net deferred tax assets; inability to fully realize benefits of
long-term cost savings and margin enhancement initiatives; lower quantities,
quality or yield of estimated coal reserves of AK Coal; increased governmental
regulation of mining activities; inability to hire or retain skilled labor and
experienced manufacturing and mining managers; and IT security threats and
sophisticated cybercrime; as well as those risks and uncertainties discussed
in the company's Annual Report on Form 10-K for the year ended December 31,
2013, as updated in subsequent Quarterly Reports on Form 10-Q and 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

AK Steel
AK Steel is a world leader in the production of flat-rolled carbon, stainless
and electrical steel products, primarily for automotive, infrastructure and
manufacturing, construction and electrical power generation and distribution
markets. The company's AK Tube subsidiary produces carbon and stainless
electric resistance welded tubular steel products for truck, automotive and
other markets. Headquartered in West Chester, Ohio (Greater Cincinnati), the
company employs approximately 6,500 men and women at seven steel plants and
two tube manufacturing plants across four states: Indiana, Kentucky, Ohio and
Pennsylvania. The company also has interests in iron ore through its
Magnetation LLC joint venture and in metallurgical coal through its AK Coal
subsidiary. Additional information about AK Steel is available at


Website: http://www.aksteel.com
Contact: Media - Michael P. Wallner, General Manager, Communications and PR
(513) 425-2688 or Investors - Roger K. Newport, Sr. Vice President, Finance
and Chief Financial Officer (513) 425-5270
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