United States Steel Corporation completed the purchase of AK Steel’s interest in Double Eagle Steel Coating Company (DESCO). The 700,000-ton electrolytic-galvanizing line (EGL) will become part of the larger operational footprint of US Steel’s Great Lakes Works.
The Great Lakes Works EGL at Dearborn will supply steel-coated products for both exposed and unexposed applications primarily in the automotive industry. Utilising the patented CAROSEL process to electrolytically apply zinc to steel substrate, the EGL line at Dearborn is the exclusive North America finishing line capable of providing both EG (free zinc) or EGA (an iron/zinc alloy) coatings. “Continuing investment into our operations to provide the highest quality product critical to our customers’ success directly supports US Steel’s ongoing transformation journey”, said US Steel President & CEO Mario Longhi. ” By increasing our operational footprint at Great Lakes Works, we are creating special synergies with our automotive customers as they seek to reach critical safety and fuel economy standards.”
Items related to the transaction with AK Steel include a onetime payment of USD 25.2M for the remaining interests of the joint venture as well as the transition of assets and utilities to US Steel Great Lakes Works. Staffing of the facility will remain through AK Steel for a 90-day transition and training period as US Steel determines appropriate staffing levels.
