AK Steel’s Ashland Kentucky Coke Plant Is Closed Permanently

AK Steel (NYSE: AKS) said today that it is permanently closing its Ashland, Kentucky coke plant in 2011.

The company currently has 263 hourly and salaried employees at the coke plant, which produces the blast furnace fuel for the company's iron- and steelmaking facility located separately in Ashland. The company said it will do its best to provide jobs for the affected employees at its Ashland Works or elsewhere in the company. Procedures for the closure will begin immediately and are expected to be completed early in the second quarter of 2011.

AK Steel said it would incur a pre-tax charge of approximately $80 million, most of which will be reflected in the company's fourth quarter 2010 financial results. Approximately $50 million of this charge will be non-cash relating to the write-off of property, plant and equipment. The remaining amount will result in cash payments made over several years, of which approximately $18 million relates to employment costs and approximately $12 million relates to closure costs.

The company said that the decision to close the facility was made because the coke plant is no longer cost competitive due to increased maintenance and increasingly stringent environmental regulations. As a result, the total per-ton cost of coke produced by the plant is significantly higher than all other sources of coke for the company.

The company said that, while it is the goal of AK Steel to be more self-sufficient in steelmaking raw materials, further operation of the Ashland Coke Plant is not in the best interests of the company and its shareholders. Further, replacing Ashland's high cost coke helps make the balance of AK Steel's Ashland Works, which employs nearly 900 men and women, more competitive. The company has secured alternate sources of coke to meet the needs of its blast furnaces.

"AK Steel recognizes that this is a difficult time for the employees who are affected," said James L. Wainscott, Chairman, President and CEO of AK Steel. "We are committed to helping them as much as possible during this transition, including, where possible, placing them in jobs available elsewhere at the Ashland Works or other operations within the corporation. The Commonwealth of Kentucky has been very supportive of our goal to make Ashland Works more competitive and we appreciate those ongoing efforts."

Source: http://www.aksteel.com/

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Cleveland-Cliffs. (2019, February 10). AK Steel’s Ashland Kentucky Coke Plant Is Closed Permanently. AZoM. Retrieved on February 23, 2024 from https://www.azom.com/news.aspx?newsID=26752.

  • MLA

    Cleveland-Cliffs. "AK Steel’s Ashland Kentucky Coke Plant Is Closed Permanently". AZoM. 23 February 2024. <https://www.azom.com/news.aspx?newsID=26752>.

  • Chicago

    Cleveland-Cliffs. "AK Steel’s Ashland Kentucky Coke Plant Is Closed Permanently". AZoM. https://www.azom.com/news.aspx?newsID=26752. (accessed February 23, 2024).

  • Harvard

    Cleveland-Cliffs. 2019. AK Steel’s Ashland Kentucky Coke Plant Is Closed Permanently. AZoM, viewed 23 February 2024, https://www.azom.com/news.aspx?newsID=26752.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit
Azthena logo

AZoM.com powered by Azthena AI

Your AI Assistant finding answers from trusted AZoM content

Azthena logo with the word Azthena

Your AI Powered Scientific Assistant

Hi, I'm Azthena, you can trust me to find commercial scientific answers from AZoNetwork.com.

A few things you need to know before we start. Please read and accept to continue.

  • Use of “Azthena” is subject to the terms and conditions of use as set out by OpenAI.
  • Content provided on any AZoNetwork sites are subject to the site Terms & Conditions and Privacy Policy.
  • Large Language Models can make mistakes. Consider checking important information.

Great. Ask your question.

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.