July 25, 2008

AK Steel and SunCoke deal needs regulatory approval

AP reported that AK Steel wants to partner with a Tennessee based company to build a plant to make electricity and supplies for steel production in southwest Ohio.

AK Steel said it had a deal with SunCoke Energy of Knoxville to buy coke and electrical power from a plant to be built, owned and operated by SunCoke. The SunCoke plant would be capable of producing about 550,000 tons of coke and 50 megawatts of electrical power a year. AK Steel has agreed to buy all the coke and electricity the plant produces for 20 years.

The union is for it, and community supporters said that it's a welcome sign of AK's long term commitment to a city still trying to recover from a yearlong lockout at the mill. Opponents said that the plant could create air pollution and devalue their homes.

It said that the deal will need regulatory approval from several levels of government and SunCoke is seeking economic incentives to build and operate the proposed USD 340 million plant.