AK Steel celebrated Tuesday the ceremonial bricklaying for the new SunCoke Energy plant that will be built adjacent to AK Steel's Middletown Works in Middletown, Ohio.
Metallurgical-grade coke, which is produced from blends of coal, is employed as a fuel and a chemical reducing agent in the production of molten iron in a blast furnace.
Although AK Steel operates coke batteries in Middletown, Ohio, and Ashland, Ky., the company currently must purchase about 30% of its annual coke requirements on the open market.
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The event marked the initial construction phase of SunCoke's $360-million Middletown plant. Once completed, the state-of-the-art, environmentally friendly, heat-recovery coke battery will be capable of supplying AK Steel with about 550,000 tons of metallurgical coke annually.
The new plant is also designed to recover waste heat from the coking process and use it to generate approximately 50 megawatts of electrical power each year, which is equivalent to about 25% of Middletown Works' electricity requirement.
AK Chairman, President and CEO James L. Wainscott said the start of construction represents a milestone event for AK Steel and for the Middletown community.
"Our long-term agreement with SunCoke Energy to supply AK Steel with coke and electrical power is one of the most forward-looking commitments by our company in recent years," said Wainscott. "The new SunCoke plant will play a vital role in the future competitiveness of our Middletown Works by providing a stable and competitive supply of coke for our blast furnace."
Wainscott also acknowledged the efforts of government and community leaders in helping to make the project a reality, including Governor Ted Strickland, Senators Sherrod Brown and George Voinovich, and Congressman John Boehner, and “many other state and local elected officials, community leaders and union representatives."
AK Steel's board of directors previously approved a 20-year supply contract with SunCoke Energy, Inc. to provide AK Steel with metallurgical-grade coke and electrical power from the new plant.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets. The company employs about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio, and Columbus, Ind. AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.