HOUSTON, Nov 11 (Reuters) - AK Steel Holding Corp on Tuesday said it has temporarily idled some of its operations in Ohio and Kentucky, citing the global downturn's effect on demand for its products used in the auto industry.
'We remain hopeful that we will be able to return our dedicated and hard-working employees to their jobs as swiftly as possible,' James Wainscott, chairman, president and CEO of AK said in a statement. 'Of course, that depends entirely on credit availability and consumer confidence, which are at the heart of this serious economic downturn.'
Shares of AK Steel fell nearly 4 percent in extended trade.
The metals industry has been hit hard by falling prices and high costs. For example on Monday, U.S. Aluminum giant Alcoa Inc said it has slashed an additional 350,000 tonnes of aluminium-making capacity worldwide, bringing its total capacity cuts to 15 percent.
The West Chester, Ohio company said plants in Mansfield, Ohio and Ashland, Kentucky will remain shuttered until early next year.
AK Steel's Mansfield Works employs 365 workers and produces stainless flat-rolled steel which is used primarily to make automotive exhaust systems.
The Ashland Works produces carbon flat-rolled steel for automotive, appliance and other markets, and the plant currently employs 1,100 workers. About 275 of those employees work at the company's coke plant, which will continue to operate at a reduced level.
The company said it continues to evaluate all of its operations and administrative functions and will be prepared to adjust to continued rapidly changing conditions, including restarting its plants sooner than expected.
(Reporting by Anna Driver in Houston; Editing by Bernard Orr) Keywords: AKSTEEL/ (anna.driver@thomsonreuters.com; 1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'We remain hopeful that we will be able to return our dedicated and hard-working employees to their jobs as swiftly as possible,' James Wainscott, chairman, president and CEO of AK said in a statement. 'Of course, that depends entirely on credit availability and consumer confidence, which are at the heart of this serious economic downturn.'
Shares of AK Steel fell nearly 4 percent in extended trade.
The metals industry has been hit hard by falling prices and high costs. For example on Monday, U.S. Aluminum giant Alcoa Inc said it has slashed an additional 350,000 tonnes of aluminium-making capacity worldwide, bringing its total capacity cuts to 15 percent.
The West Chester, Ohio company said plants in Mansfield, Ohio and Ashland, Kentucky will remain shuttered until early next year.
AK Steel's Mansfield Works employs 365 workers and produces stainless flat-rolled steel which is used primarily to make automotive exhaust systems.
The Ashland Works produces carbon flat-rolled steel for automotive, appliance and other markets, and the plant currently employs 1,100 workers. About 275 of those employees work at the company's coke plant, which will continue to operate at a reduced level.
The company said it continues to evaluate all of its operations and administrative functions and will be prepared to adjust to continued rapidly changing conditions, including restarting its plants sooner than expected.
(Reporting by Anna Driver in Houston; Editing by Bernard Orr) Keywords: AKSTEEL/ (anna.driver@thomsonreuters.com; 1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.