Oct. 24, 2006 — AK Steel’s board of directors has approved $55-million in capital investments that will help to increase the company’s production capacity for high quality, grain-oriented electrical sheet steels by about 12%.

The newly approved capital funds will be used to upgrade and modify existing production equipment at the company's Butler, Pa., and Zanesville, Ohio, facilities.

In April, AK Steel had announced a $14 million capital investment to increase electrical steel production capacity at its Butler Works. That project is expected to be completed in the first quarter of 2007. Together, the two projects will increase AK Steel's production capacity for electrical steel products to about 335,000 tons per year by mid-2008.

"With this latest investment, AK Steel will significantly enhance its commitment to meeting the needs of customers throughout the world for advanced grain-oriented electrical steels," said James L. Wainscott, Chairman, President and CEO of AK Steel.

Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets. The company is one of the largest producers in the world of silicon-alloy electrical steels, and is the leading domestic producer of the high-value-added grain-oriented steels.