AEIF president Bailey meets with Wall Street analysts.NEW YORK--(BUSINESS WIRE)--Nov. 13, 1996-- Calls for feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. of AK Steel expansion at Middletown, Ohio Middletown is an All-American City[2] located in Butler and Warren counties in the southwestern part of the U.S. state of Ohio. Formerly in Lemon, Turtlecreek, and Franklin townships, Middletown was incorporated by the Ohio General Assembly on February 11, 1833, and AEIF AEIF Association Européenne pour l'Interopérabilité Ferroviaire (French: European Association for Railway Interoperability) President Michael Bailey Michael Bailey or Mike Bailey may refer to:
See: New York Stock Exchange ) in Middletown, Ohio today (Wednesday) took the campaign to support expansion of the Middletown Mill to the Wall Street financial analysts and investors. Bailey accompanied by Middletown community representatives and an ex-Armco executive called upon the shareholders of AK Steel to encourage the company to commission an independent feasibility study to determine the best location for a major expansion now under consideration of AK Steel. At the same time, the Union released a five-page position paper that asserts that the Middletown Works has more than enough land, adequate resources and utilities as well as an infrastructure that will save millions in both initial construction and operating costs operating costs npl → gastos mpl operacionales ." AK Steel has announced that it is considering construction of an entirely new "world class" cold strip mill facility. Reports in Ohio's newspapers, the Wall Street Journal and other sources indicate that this plant will cost in the neighborhood of $1.1 billion. Although AK Steel has not announced where the new facility will be built, the company has applied for environmental permits in areas near Rockport, Indiana Rockport is a city in Spencer County, Indiana, along the Ohio River. The population was 2,160 at the 2000 census. The city is the county seat of Spencer CountyGR6. and Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. . "The members we represent fear for their jobs. They fear for their futures, and the future of their families," stated Bailey. "That fear is made worse by AK Steel's reluctance to discuss these issues with us." "Steel mills continually require major capital investments. The fears expressed by our members stem from the knowledge that future capital investment will follow the new technology. Moreover, in a downturn, the new facility will likely be favored over Middletown, further undermining our plant's profitability," Bailey emphasized. "We represent 3,300 AK Steel employees," Bailey continued, "Yet the company never even sat down and explained why it has considered locating the new facility outside of Middletown, Ohio. Our message is very simple: AK Steel should consider a very reasonable and prudent alternative: expand right here in Middletown." AEIF is calling for an Independent Feasibility Study for submission to investors to evaluate the advantages of locating a new cold mill complex at Middletown. The proposed study would: compare (1) capital costs, (2) operating costs, (3) environmental impacts and balance sheet implications, including liquidity and leverage of expanding at Middletown versus greenfield locations. This study should be immediately conducted so that a report can be made to the shareholders within 60 days. Bailey told the analysts and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. that "failure to site the new facility at Middletown could have a devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. impact on employees morale. It was the loyalty and productivity of the Middletown employees that helped rescue AK Steel from the brink of bankruptcy in 1992 to earn the highest profit per ton of any steel company in the U.S. in both 1994 and 1995. A big part of the reason the employees have been able to achieve such impressive productivity gains is that they have always felt their jobs and their retirement funds were secure. Today, however our members fear for their jobs." AEIF urged the Management and Board of Directors of AK Steel to refrain from any final expansion decision until this study is completed and reviewed by stock and bond investors. "We know that our union members at the Middletown Works are the best steelworkers in the world. In fact, Tom Graham For the American football player, see . Tom Graham (born Thomas Alexander Graham , 8 January 1980) is a British actor. Born in Nottingham, his mother is Irish and his father Scottish. He read Psychology at Manchester University. himself said "the men and women of AK Steel are the ones who daily shed the sweat and tears that make AK the most profitable steel maker in the land." We ask you and the shareholders of AK Steel to question, why not expand in Middletown, Ohio? AK Steel has never answered that question," concluded Bailey. Approximately 20 analysts and institutional investors attended the briefing. CONTACT: AEIF, 513-423-6573 or Locker Associates, 212-962-2980 |
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