June 24, 2015
U.S. Steel Buys AK Steel’s Interest in DESCO
United States Steel Corp., Pittsburgh, has acquired AK Steel’s interest in Double Eagle Steel Coating Co. The 700,000-ton electrolytic-galvanizing line will become part of the larger operational footprint of U.S. Steel's Great Lakes Works. DESCO was a joint venture between U.S. Steel and the former Severstal North America, which was acquired by AK Steel in 2014.
The Great Lakes Works EGL at Dearborn will supply automotive customers with steel-coated products for both exposed and unexposed applications, the company says. The EGL line at Dearborn is capable of providing both EG or EGA coatings.
"Continuing investment into our operations to provide the highest quality product critical to our customers' success directly supports U.S. Steel's ongoing transformation journey," says U.S. Steel President and CEO Mario Longhi. "By increasing our operational footprint at Great Lakes Works, we are creating special synergies with our automotive customers as they seek to reach critical safety and fuel economy standards."
The Great Lakes Works EGL line at Dearborn is well suited to increase the company’s ability to provide advanced high-strength steels, including third-generation grades under development, as well as producing high- quality exposed steel for automotive body and closure applications, U.S. Steel claims. The line's attributes will work well with the shape and mechanical properties of AHSS substrate from U.S. Steel's joint venture, PRO-TEC Coating Co.