AK Steel
| Company type | Public (until 2020) |
|---|---|
| Industry | Steel manufacturing |
| Predecessor | Armco, Inc. |
| Founded | 1899 |
| Founder | George Matthew Verity (founder of predecessor Armco) |
| Defunct | 2020 |
| Fate | Acquired by Cleveland-Cliffs |
| Headquarters | West Chester Township, Ohio , United States |
Area served | United States, Canada, Mexico, Western Europe |
Key people | Tom Graham, Richard M. Wardrop Jr. |
| Products | Flat-rolled carbon steel, stainless steel, electrical steel products, steel tubing, die design and tooling services, hot and cold stamped components |
Number of employees | Approximately 3,100 (minimum base workforce as per collective bargaining agreement before 2005) |
| Parent | Cleveland-Cliffs (from 2020) |
AK Steel Holdings Corporation was a U.S.-based steel manufacturer with its headquarters located in West Chester Township, Ohio. The company's name derived from the combination of its predecessor Armco's initials and those of Kawasaki Steel Corporation. In 2020, AK Steel became part of Cleveland-Cliffs through acquisition.
The firm operated a total of eight steel mills and two tube production plants throughout the United States, with sites in Ashland, Kentucky; Butler, Pennsylvania; Coshocton, Ohio; Dearborn, Michigan; Mansfield, Ohio; Middletown, Ohio; Rockport, Indiana; and Zanesville, Ohio. Its manufacturing footprint extended across the United States, Canada, Mexico, and Western Europe. AK Steel focused on producing flat-rolled carbon steel, stainless steel, and electrical steel products primarily catering to the automotive industry, infrastructure projects, manufacturing—including electrical power—and also served distributors and converters. The product portfolio further included carbon and stainless steel tubing, die design and tooling services, as well as components formed through hot and cold stamping processes. In 2018, sales distribution was led by automotive customers at 63%, followed by infrastructure and manufacturing sectors at 15%, and distributors/converters at 22%.
Despite its market role, AK Steel attracted criticism related to environmental pollution and workplace safety concerns.
In 2019, the company was honored as General Motors' Supplier of the Year for Non-Fabricated Steel for the second consecutive year. Additionally, it earned Ford’s Smart Pillar Award as a top global supplier during the 21st annual Ford World Excellence Awards.
History
Established in 1899 as The American Rolling Mill Company (ARMCO) in Middletown, Ohio, the firm commenced operations at its original production site there. George Matthew Verity (1865–1942) was among the founders and served as ARMCO’s inaugural president.
ARMCO initiated a monthly bulletin in 1914 aimed at improving communication among Operating Department staff. By 1922, it expanded by inaugurating a second plant known as Ashland Works in Ashland, Kentucky.
In 1956, ARMCO acquired the American Bantam Car Company—the initial manufacturer of the WWII Jeep—which had transitioned to trailer production after losing the Jeep contract. The company further expanded in 1971 by acquiring Burns & McDonnell, an engineering firm based in Kansas City that became employee-owned in 1985. ARMCO rebranded to Armco, Inc. in 1978 and shifted its corporate headquarters to New Jersey by 1985.
The early 1980s recession severely affected the U.S. steel sector; while many competitors suffered losses, Armco managed to break even. In 1989, Armco entered into a limited partnership with Kawasaki Steel Corporation that included incorporating several Kawasaki production facilities.
Although Armco surpassed $1 billion in annual revenue during the early 1990s, profitability remained elusive. To address this, executives Tom Graham and Richard M. Wardrop Jr. were brought on board to divest underperforming assets and restructure management. The company relocated its headquarters to Pittsburgh, Pennsylvania in 1993 and adopted the name AK Steel Holdings—reflecting both its Armco origins and Kawasaki affiliation—while selling off the Kansas City Bolt and Nut Company plant to Bain Capital.
AK Steel launched an initial public offering in March 1994 to raise capital for debt reduction. The headquarters returned to Middletown in 1995. That same year saw approval of a $1.1 billion investment to build a new steel mill in Rockport, Indiana. However, labor relations proved challenging; between 1992 and 1996 OSHA issued citations for safety violations including fatal incidents at company plants.
In 1999 AK Steel purchased its former parent company Armco Inc. for $1.3 billion. Labor conflicts resulted in a lockout at the Mansfield plant from 1999 until union workers returned alongside replacements in 2003. Another lockout occurred in Middletown in 2006 amid contract negotiations. The company moved its headquarters again in 2007 to West Chester Township, Ohio.
AK Steel grew through acquisitions: it acquired Severstal’s steel-making assets and joint ventures for $700 million in 2014; later purchasing Precision Partners Holding Company for $360 million in 2017.
On March 13, 2020, AK Steel was acquired by Cleveland-Cliffs for $1.1 billion, merging into North America’s largest steel producer and significantly expanding Cleveland-Cliffs’ market presence and global operations.
Inclusion in the S&P 500 (2008–2011)
The company became part of the S&P 500 index in 2008. However, by 2011, it was removed from this index and subsequently included in the S&P 600.
In popular culture
Middletown, Ohio's dependence on AK Steel’s Middletown Works is prominently featured in the 2016 bestseller Hillbilly Elegy by former U.S. Vice President J.D. Vance.
Additionally, Studs Terkel’s book Working contains an interview with ARMCO millworker Grace Clements, which served as inspiration for James Taylor’s song "Millwork."
Environmental record
On June 27, 2000, the United States Environmental Protection Agency (EPA) issued an Emergency Order against AK Steel’s Butler Works facility due to discharges of nitrate/nitrite and hexavalent chromium into Connoquenessing Creek. The company resolved this matter in 2004 by paying $1.2 million.
In 2006, AK Steel consented to a cleanup settlement valued between $12 and $13 million to address PCB contamination in Middletown, Ohio.
AK Steel was ranked first on Mother Jones’ list of the top 20 polluters in 2010, releasing over 12,000 tons of hazardous chemicals into waterways across Ohio.
According to data from 2014, the Political Economy Research Institute placed AK Steel as the 53rd largest emitter of airborne pollutants in the United States, responsible for emitting approximately 343,000 pounds of toxic substances while performing well on environmental justice evaluations.
In early 2015, the EPA identified the Ohio River as the most polluted waterway in the U.S., with AK Steel accounting for more than 70% of the river’s chemical discharges totaling 23 million pounds in 2013.
By 2018, AK Steel reported compliance rates exceeding 99.99% for both air and water environmental standards.
Middletown Works lockout
In 2004, AK Steel suspended its obligation to maintain a minimum base workforce of 3,114 employees as specified by its collective bargaining agreement with the Armco Employees Independent Federation (AEIF). This suspension was upheld by an arbitrator until May 2005 and later permitted AK Steel to substitute financial compensation for maintaining the minimum staffing levels. The AEIF filed legal challenges against these decisions.
On March 1, 2006, AK Steel locked out about 2,700 workers at its Middletown Works plant in Ohio and replaced them with roughly 1,800 salaried and temporary employees. In July 2006, the AEIF affiliated with the International Association of Machinists and Aerospace Workers. Later that year, union members rejected AK Steel’s final contract proposal.
Following a year-long deadlock—the longest in Middletown Works’ century-plus history—an agreement was reached on February 28, 2007, and ratified by union members on March 14. The resolution included a $7.7 million payment from AK Steel allocated evenly among profit sharing, an employee assistance fund for workers not recalled to their jobs, and an escrow fund for dispute resolution. This agreement ended both the Employment Security Plan and all minimum base workforce guarantees.
This lockout represented a pivotal labor dispute that significantly influenced AK Steel’s labor relations approach at its Middletown headquarters.
Pittsburgh Logistics Systems Lawsuit
At the end of 2016, AK Steel notified Pittsburgh Logistics Systems, Inc. (operating as PLS Logistics), its truck dispatch and rail operations manager since 1995, that their services would be replaced by Ryder beginning January 18, 2017. At that time, AK Steel contributed approximately 32% of PLS’s revenue. PLS filed a lawsuit in the United States District Court for the Southern District of Ohio, arguing that Ryder should be prohibited from using PLS’s trucking company contacts servicing AK Steel. However, Judge Michael R. Barrett ruled in favor of Ryder and AK Steel, permitting them to proceed with utilizing these carriers.
Historical films
- The Romance of Iron and Steel (1938) is a 21-minute monochrome film funded by American Rolling Mill Company (ARMCO), highlighting the steelmaking process and corporate environment, with an appearance by founder George M. Verity.
- Making Steel (mid-1990s), presented by CEO Richard M. Wardrop, Jr., explains the steel production methods used within AK Steel facilities.