CLEVELAND — The acquisition of AK Steel by a Cleveland-based manufacturer should have a minimal impact on AK Steel’s Mansfield Works plant, a spokesperson said.
“We do not anticipate significant headcount reductions … and we do not anticipate facility closures as part of the expected synergies,” said Lisa Jester, corporate manager of communications and public relations for AK Stee.
Jester added that “active employees and retirees’ pension benefits will not be impacted” by the merger.
Cleveland-Cliffs announced Wednesday it intends to buy AK Steel (located locally at 913 Bowman St.), for approximately $1.1 billion. According to a joint press release from the two companies, the transaction is expected to close in the first half of 2020, subject to approval by the shareholders of both companies, receipt of regulatory approvals and satisfaction of other customary closing conditions. AK Steel will become a direct, wholly-owned subsidiary of Cleveland-Cliffs but keep its branding and corporate identity.
Until the transaction goes through, both companies will continue to operate as two separate entities.
Cleveland-Cliffs is the largest and oldest independent iron ore mining company in the United States. AK Steel is a producer of flat-rolled carbon, stainless and electrical steel products that employs approximately 9,500 employees across North America and western Europe.
AK Steel’s 548-acre Mansfield Works plant houses stainless steel melting, casting, hot and cold rolling and finishing operations. Representatives from the Mansfield Works plant declined to comment on this story.
“The steel industry remains a very important part of our local economy. We look forward to working with the new owners to ensure that Richland County remains a key place to grow their business,” Jodie Perry, president of the Richland Area Chamber, said in an email.
