AK Steel Holdings Corporation was an American
steelmaking
Steelmaking is the process of producing steel from iron ore and/or scrap. Steel has been made for millennia, and was commercialized on a massive scale in the 1850s and 1860s, using the Bessemer process, Bessemer and open hearth furnace, Siemens-M ...
company headquartered in
West Chester Township, Ohio. The company, whose name was derived from the initials of Armco, its predecessor company, and
Kawasaki Steel Corporation
Kawasaki Steel Corporation (Kawasaki Seitetsu) was a Japanese steel manufacturing company.
History
Originally forming the Steel Making Department of Kawasaki Heavy Industries, the Kawasaki Steel Corporation was incorporated in August 1950 follow ...
, was acquired by
Cleveland-Cliffs in 2020.
AK Steel operated eight steel plants and two tube manufacturing plants in
Ashland, Kentucky
Ashland is a List of cities in Kentucky, home rule-class city in Boyd County, Kentucky, United States. The most populous city in Boyd County, Ashland is located upon the southern bank of the Ohio River at the state border with Ohio and near West ...
;
Butler, Pennsylvania
Butler is a city in Butler County, Pennsylvania, United States, and its county seat. It is north of Pittsburgh and part of the Greater Pittsburgh region. As of the 2020 census, the population was 13,502.
Butler is named after Major General ...
;
Coshocton, Ohio;
Dearborn, Michigan
Dearborn is a city in Wayne County, Michigan, Wayne County in the U.S. state of Michigan. An inner-ring Metro Detroit, suburb of Detroit, Dearborn borders Detroit to the south and west, roughly west of downtown Detroit. In the 2020 United States ...
;
Mansfield, Ohio
Mansfield is a city in Richland County, Ohio, United States, and its county seat. The population was 47,534 at the 2020 United States census, 2020 census. Located approximately from Cleveland and Columbus, Ohio, Columbus via Interstate 71, it i ...
;
Middletown, Ohio
Middletown is a city in Butler County, Ohio, Butler and Warren County, Ohio, Warren counties in the U.S. state of Ohio. The population was 50,987 at the 2020 United States census, 2020 census. It is part of the Cincinnati metropolitan area in sou ...
;
Rockport, Indiana;, and
Zanesville, Ohio
Zanesville is a city in Muskingum County, Ohio, United States, and its county seat. Located at the confluence of the Licking River (Ohio), Licking and Muskingum River, Muskingum rivers, the city is approximately east of Columbus, Ohio, Columb ...
.
The company had manufacturing operations in the
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
,
Canada
Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
, and
Mexico
Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...
, and facilities in Western Europe. AK Steel produced flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing sectors, including electrical power, and distributors and converters markets. The company also provided carbon and stainless steel tubing products, die design and tooling, and hot- and cold-stamped components. Of AK Steel's 2018 sales, 63% went to the automotive industry, 15% to infrastructure and manufacturing industry and 22% to distributors and converters.
[
The company was criticized for its record regarding ]pollution
Pollution is the introduction of contaminants into the natural environment that cause harm. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the component ...
and worker safety.
In 2019, AK Steel was named GM Supplier of the Year for Non Fabricated Steel by General Motors for the second consecutive year. AK Steel was also presented with a Smart Pillar Award from Ford, as a top-performing global supplier at the 21st annual Ford World Excellence Awards.
History
The company was founded in 1899 as The American Rolling Mill Company (ARMCO) in Middletown, Ohio
Middletown is a city in Butler County, Ohio, Butler and Warren County, Ohio, Warren counties in the U.S. state of Ohio. The population was 50,987 at the 2020 United States census, 2020 census. It is part of the Cincinnati metropolitan area in sou ...
, where it operated a production facility. George Matthew Verity (1865–1942) was a founder and its first president.
In 1914, the company began publishing the monthly ARMCO bulletin "to facilitate an interchange of thought and suggestion, and to create a better understanding of the activities and problems of the Operating Department employees."
In 1922, it opened a second production facility, Ashland Works in Ashland, Kentucky
Ashland is a List of cities in Kentucky, home rule-class city in Boyd County, Kentucky, United States. The most populous city in Boyd County, Ashland is located upon the southern bank of the Ohio River at the state border with Ohio and near West ...
.
In 1956 the company took over American Bantam Car Company, the original creator and manufacturer of the World War II
World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
Jeep
Jeep is an American automobile brand, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with other assets, from its previous owner, American Motors Co ...
. American Bantam switched to producing trailers after losing the Jeep contract to Willys-Overland
Willys (pronounced , "Willis")
was a brand name used by Willys–Overland Motors, an American automobile company, founded by John North Willys. It was best known for its design and production of World War II–era military jeeps (MBs), Willys ...
.
In 1971, Armco Steel purchased Kansas City
The Kansas City metropolitan area is a bi-state metropolitan area anchored by Kansas City, Missouri. Its 14 counties straddle the border between the U.S. states of Missouri (9 counties) and Kansas (5 counties). With and a population of more t ...
-based engineering firm Burns & McDonnell; however, in 1985, employees of Burns & McDonnell secured a loan to buy the company from Armco. In 1978, Armco Steel was renamed Armco, Inc. It moved its headquarters to New Jersey in 1985.
In 1982, a recession threatened the U.S. steel industry. Several of the nation's steel companies reported losses for the first half of the year, while other companies, like Armco, were barely breaking even. In 1989, it entered into a limited partnership with Kawasaki Steel Corporation
Kawasaki Steel Corporation (Kawasaki Seitetsu) was a Japanese steel manufacturing company.
History
Originally forming the Steel Making Department of Kawasaki Heavy Industries, the Kawasaki Steel Corporation was incorporated in August 1950 follow ...
, which contributed several of its production facilities to the company.
While the company achieved over $1 billion in annual sales in the early 1990s, it was not profitable. The company then hired the 65 year old Tom Graham and Richard M. Wardrop, Jr. to improve its finances. These executives divested unprofitable operations and replaced most of the company's executives and managers. In 1993, the company moved its headquarters to Pittsburgh
Pittsburgh ( ) is a city in Allegheny County, Pennsylvania, United States, and its county seat. It is the List of municipalities in Pennsylvania#Municipalities, second-most populous city in Pennsylvania (after Philadelphia) and the List of Un ...
, Pennsylvania
Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...
and renamed itself AK Steel Holdings reflecting its Armco roots and sizable investment by Kawasaki. The same year, the company sold the Kansas City Bolt and Nut Company plant to Bain Capital
Bain Capital, LP is an American Investment company, private investment firm based in Boston, Massachusetts, Boston, Massachusetts, with around $185 billion of assets under management. It specializes in private equity, venture capital, credit, p ...
to avoid its shutdown. In March 1994, the company became a public company
A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...
via an initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
, using the proceeds to pay down its unmanageable debt load. In 1995, the company moved its headquarters back to Middletown. In 1996, Graham made the decision to spend $1.1 billion to construct a new steel production facility in Rockport, Indiana. Rifts with its unions and its safety record, including 10 fatalities at its plants in 4 years, resulted in fines and scrutiny from the Occupational Safety and Health Administration
The Occupational Safety and Health Administration (OSHA; ) is a regulatory agency of the United States Department of Labor that originally had federal visitorial powers to inspect and examine workplaces. The United States Congress established ...
(OSHA) ih 1996 as well. In 1999, the company acquired Armco Inc., its former parent company, for $1.3 billion. There was a lock-out at the Mansfield, Ohio plant after a disagreement on a three-year labor contract with 620 USWA employees.
In 2003, the bitter labor dispute in Mansfield ended, the union workers returning to work alongside those who'd replaced them. In 2006, there was another lockout of 2,700 workers in Middletown, Ohio about another contract renewal. In 2007, the company moved its headquarters to West Chester Township, Butler County, Ohio
West Chester Township is one of the thirteen townships of Butler County, Ohio, United States, located in the southeastern corner of the county. It is the most populous township in Ohio, with a population of 65,242 at the 2020 census. Situated b ...
.
In 2014, the company acquired steel-making assets, including a coke-making facility and interests in 3 joint ventures that process flat-rolled steel products in Dearborn, Michigan
Dearborn is a city in Wayne County, Michigan, Wayne County in the U.S. state of Michigan. An inner-ring Metro Detroit, suburb of Detroit, Dearborn borders Detroit to the south and west, roughly west of downtown Detroit. In the 2020 United States ...
, from Severstal for $700 million. In August 2017, the company acquired Precision Partners Holding Company for $360 million.
On March 13, 2020, the company was acquired by Cleveland-Cliffs for $1.1 billion.
Inclusion in the S&P 500 (2008–2011)
In 2008, the company was added to the S&P 500
The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and in ...
. In 2011, it was removed from the S&P 500 and added to the S&P 600
The S&P SmallCap 600 Index (S&P 600) is a stock market index established by S&P Global Ratings. It covers roughly the small-cap range of American stocks, using a capitalization-weighted index.
To be included in the index, a stock must have a to ...
.
In popular culture
The 2016 bestselling book, '' Hillbilly Elegy'', written by J.D. Vance, the 50th Vice-President of the United States
The vice president of the United States (VPOTUS) is the second-highest ranking office in the executive branch of the U.S. federal government, after the president of the United States, and ranks first in the presidential line of succession. Th ...
, focuses on life in Middletown, Ohio
Middletown is a city in Butler County, Ohio, Butler and Warren County, Ohio, Warren counties in the U.S. state of Ohio. The population was 50,987 at the 2020 United States census, 2020 census. It is part of the Cincinnati metropolitan area in sou ...
and makes many references to the town's dependence on AK Steel's Middletown Works facility.
'' Working'', by Studs Terkel, includes an interview with millworker Grace Clements, who worked at ARMCO making luggage components. Her story was the basis for the James Taylor
James Vernon Taylor (born March 12, 1948) is an American singer-songwriter and guitarist. A six-time Grammy Award winner, he was inducted into the Rock and Roll Hall of Fame in 2000.
Taylor achieved his breakthrough in 1970 with the single "Fi ...
song "Millwork" in the Broadway musical of the same name.
Legal record
Environmental record
On June 27, 2000, the United States Environmental Protection Agency
The Environmental Protection Agency (EPA) is an independent agency of the United States government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it began operation on De ...
(EPA) issued an Emergency Order pursuant to the Safe Drinking Water Act, Clean Air Act and the Clean Water Act
The Clean Water Act (CWA) is the primary federal law in the United States governing water pollution. Its objective is to restore and maintain the chemical, physical, and biological integrity of the nation's waters; recognizing the primary respo ...
to AK Steel's Butler Works in Butler, Pennsylvania concerning the nitrate/nitrite compounds being released into the Connoquenessing Creek, an occasional water source for the Borough of Zelienople, alleging that AK Steel had failed to properly dispose of hexavalent chromium
Hexavalent chromium (chromium(VI), Cr(VI), chromium 6) is any chemical compound that contains the element chromium in the +6 oxidation state (thus hexavalent). It has been identified as carcinogenic, which is of concern since approximately of ...
. The issue was settled in 2004, with AK Steel agreeing to pay a total of $1.2 million.
In 2006, AK Steel reached a settlement to compensate for polychlorinated biphenyl
Polychlorinated biphenyls (PCBs) are organochlorine compounds with the formula Carbon, C12Hydrogen, H10−''x''Chloride, Cl''x''; they were once widely used in the manufacture of carbonless copy paper, as heat transfer fluids, and as dielectri ...
(PCB) contamination in Middletown, Ohio
Middletown is a city in Butler County, Ohio, Butler and Warren County, Ohio, Warren counties in the U.S. state of Ohio. The population was 50,987 at the 2020 United States census, 2020 census. It is part of the Cincinnati metropolitan area in sou ...
. The settlement included cleanup work estimated to cost $12–13 million.
AK Steel was listed #1 on the Mother Jones Top 20 polluters of 2010; dumping over 12,000 tons of toxic chemicals into Ohio waterways.
Based on 2014 data, the Political Economy Research Institute
The Political Economy Research Institute (PERI) is an independent research unit at the University of Massachusetts Amherst. According to its mission statement, it "...promotes human and ecological well-being through our original research". PERI was ...
ranked AK Steel 53rd among corporations emitting airborne pollutants in the United States. The ranking is based on the quantity (343,000 pounds) and toxicity of the emissions. At the same time, it scored well in terms of environmental justice
Environmental justice is a social movement that addresses injustice that occurs when poor or marginalized communities are harmed by hazardous waste, resource extraction, and other land uses from which they do not benefit. The movement has gene ...
, affecting smaller percentages of the poor and minorities than their respective percentages of the total population.
In early 2015, the EPA listed the Ohio River
The Ohio River () is a river in the United States. It is located at the boundary of the Midwestern and Southern United States, flowing in a southwesterly direction from Pittsburgh, Pennsylvania, to its river mouth, mouth on the Mississippi Riv ...
as the most contaminated body of water in the U.S. According to the EPA's Annual Toxics Release Inventory, of the 23 million pounds of chemicals discharged into the river in 2013, more than 70 percent came from AK Steel.
According to their own report, AK Steel had an air and water compliance rate of over 99.99% in 2018.
Middletown Works lockout
Armco and the Armco Employees Independent Federation (AEIF), a labor union
A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
, had a collective bargaining agreement in place in 2004 that required AK Steel to employ 3,114 workers, a "minimum base force guarantee". The agreement also authorized AK Steel to suspend the minimum number. On January 13, 2004, AK Steel informed the AEIF that it was suspending the minimum. The union then filed a grievance contesting the suspension. An arbitrator upheld the decision by AK Steel on July 1, 2004, subject to certain limitations, through at least May 10, 2005. The union sought and was granted a new hearing, and on July 1, 2005, the arbitrator issued a comprise total workforce. As part of the agreement the arbitrator allowed AK Steel to set aside financial payments to a fund, in lieu of hiring to the minimum, the amount of which was set by the arbitrator on October 7, 2005. On September 29, 2005, the AEIF filed a lawsuit against AK Steel in the United States District Court for the Southern District of Ohio (''AEIF v. AK Steel Corp.''; Case No. 1:05-CV-639), in which the AEIF sought to vacate that portion of the July 1, 2005 Award. AK Steel answered the complaint and filed counterclaims (''AK Steel Corp. v. AEIF'', Case No. 1:05-CV-531) on November 2, 2005.["Settlement Agreement"]
. - International Association of Machinists and Aerospace Workers
On March 1, 2006, AK Steel began a lockout of about 2,700 workers at the Middletown Works plant in Middletown, Ohio
Middletown is a city in Butler County, Ohio, Butler and Warren County, Ohio, Warren counties in the U.S. state of Ohio. The population was 50,987 at the 2020 United States census, 2020 census. It is part of the Cincinnati metropolitan area in sou ...
. By the next day, the mill was operated by 1,800 salaried and temporary replacement workers.
On July 27, 2006, the AEIF affiliated with the International Association of Machinists and Aerospace Workers
The International Association of Machinists and Aerospace Workers (IAM) is an AFL–CIO/ CLC trade union representing over 600,000 workers as of 2024 in more than 200 industries with most of its membership in the United States and Canada.
Orig ...
. In late October, AK offered a so-called final contract, which was rejected by the union by a vote of 2 to 1.
One year after the lockout started, on February 28, 2007, AK Steel reached an agreement with the labor union.
The union members ratified the proposed contract on March 14, 2007.
As part of the agreement, the AEIF and AK Steel reached a joint settlement of their 5 counter lawsuits, with AK Steel paying $7,702,301. A third of the amount was for profit sharing, a third for an assistance fund for employee benefits of employees not recalled to work, and a third an escrow account to settle employee disputes and claims as a result of the lockout. The Employment Security Plan and the Trade and Craft Quota and Service/Support Group Quota (the "minimum base force guarantees") were completely terminated.[
This lockout was the longest labor stalemate in the 105-year history of the Middletown Works. The previous longest stalemate had been a six-day company lockout in 1986. Prior to that lockout, Armco's Middletown works never lost one minute of production due to a labor issue.
]
Pittsburgh Logistics Systems Lawsuit
In late 2016, AK Steel notified Pittsburgh Logistics Systems, Inc. (D/b/a PLS Logistics), a company which had been managing all of AK's truck dispatch and rail operations since 1995, that it was being replaced by Ryder
Ryder System, Inc. is an American transportation and logistics company, specializing in truck rental and leasing, fleet management, supply chain management, and transportation management. It also offers full-service leasing, rental and maint ...
as of January 18, 2017. At the time, AK Steel constituted 32% of the PLS' revenue base, according to court filings. PLS battled both Ryder and AK Steel in the United States District Court for the Southern District of Ohio, arguing that Ryder should not be able to use the list of trucking companies that PLS had used while servicing AK. However, U.S. District Court Judge Michael R. Barrett rejected PLS's contention and cleared Ryder and AK to proceed with the use of these carriers.[
]
Historical films
* '' The Romance of Iron and Steel'' (1938) is a 21-minute, black and white film sponsored by the American Rolling Mill Company (ARMCO) and produced by Cinécraft Productions
Cinécraft Productions, Inc. is a privately held American sponsored film and Television studio, video production studio in Cleveland, Cleveland, Ohio.
The studio is said to be the longest-standing sponsored film and video production house in th ...
. The title of the film comes from a theme of the steel exhibit at the Great Lakes Exposition held in Cleveland, Ohio in 1936–37. The film opens with an overview of the ARMCO Research Lab followed by a series of tracking shots taken from overhead cranes in an ARMCO plant that offer a unique perspective into the process of making rolled steel. George M. Verity, ARMCO founder, ends the film with a message about “ARMCO men” and the company culture.
*''Making Steel'' is a 47-minute film made in the mid-1990s. Introduced by CEO Richard M. Wardrop, Jr. it tells the story of the manufacture of steel in the AK Steel plants.[https://youtube.com/9AMbKpeJRoU]
See also
* List of steel producers
This is a list of the largest steel-producing companies in the world mostly based on the list by the World Steel Association. The list ranks steelmakers by volume of steel production in millions of tons over time and includes all steelmakers wit ...
References
External links
{{DEFAULTSORT:Ak Steel Holding
1899 establishments in Ohio
1994 initial public offerings
2020 mergers and acquisitions
American companies established in 1899
American corporate subsidiaries
Buildings and structures in Butler County, Ohio
Companies formerly listed on the New York Stock Exchange
Former components of the Dow Jones Industrial Average
Itochu
Manufacturing companies based in Ohio
Manufacturing companies established in 1899
Superfund sites in Ohio