MIDDLETOWN, Ohio (WDTN) – AK Steel is buying a Michigan steel plant for $700-million.
Russian steelmaker Severstal OAO is selling its Dearborn plant. The deal includes the cokemaking facility and interest in three joint ventures that process flat-rolled steel products.
AK Steel says the “increased scale enhances the company’s ability to better serve customers.”
AK Steel also liked the fact that the plant was recently renovated and modernized.
It says it has no plans alter or cease operations at any of its facilities as a result of the purchase.
The deal means AK Steel will be closer to many automotive customers, said James Wainscott, the company’s chairman, president and CEO. “It furthers our automotive strategy and strengthens our carbon steelmaking footprint,” he said.
The Dearborn plant employees 1,400 people. The UAW contract with 1,100 workers there will remain in tact. It expires in March 2017.
The deal is expected to be closed by the end of 2014.