United States Steel Corp. (X) announced another strategic step in the company's Carnegie Way transformation journey by completing the purchase of AK Steel Holding Corp.'s (AKS) interest in Double Eagle Steel Coating Co. or DESCO.
The 700,000 ton electrolytic-galvanizing line or EGL will become part of the larger operational footprint of U. S. Steel's Great Lakes Works. Utilizing 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.
U.S. Steel noted that the Great Lakes Works EGL at Dearborn will allow customers primarily in the automotive industry to be provided world-class steel coated products for both exposed and unexposed applications.
Items related to the transaction with AK Steel include a onetime payment of $25.2 million for the remaining interests of the joint venture as well as the transition of assets and utilities to U.S. Steel Great Lakes Works.
U.S. Steel said that staffing of the facility will remain through AK Steel for a 90-day transition and training period as U. S. Steel determines the appropriate staffing levels.
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