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 incident.
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
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