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Confidence is central message in AK Steel plant upgrade plan

No additional employees are projected to be hired in conjunction with AK Steel's newly announced $21 million upgrade at its Butler Works.

But that doesn't detract from the show of confidence that this new investment in the plant represents. Plant investments often boost production without adding labor costs.

If AK corporate officials were having any doubts about the local plant's future, they wouldn't have announced the decision to spend more money here to make the production facility better.

It could be a significant increase in demand for the plant's products that will decide if or when AK needs to add workers. And that was evident in yesterday's announcement of second quarter results for AK, with sales and profits growing sharply over last year — quarterly profits up approximately 30 percent and sales up 18 percent.

The Butler Works employs approximately 1,500 union and salaried workers. The plant produces specialty stainless and electrical steels.

Alan McCoy, AK vice president of government and public relations, was upbeat in terms of the demand for the local plant's products.

"The electrical steel market and demand worldwide continues to be very strong, especially our high-value-added electrical steel," he said.

With development in the Far East continuing at a fast pace, it would be reasonable to expect that that growth will positively impact the local plant for years to come.

The newly authorized plant upgrade, which carries the designation Phase 4, is part of a $270 million, four-year investment by AK in its production facilities.

A big chunk of that total investment has been allocated to the local plant, which signals that the company isn't having any misgivings about past confidence it has shown in the local production facility.

The latest announcement reinforces that thinking.

As currently targeted, the newly announced work, which will improve the production process here, is to be completed by late 2009.

While the project anticipates no additional employment positions, it portends stability regarding the jobs that already exist.

For the local economy, which greatly depends on the positive impact of AK and its employees, the latest announcement represents an upbeat development amid the uncertain economic picture on the state and national fronts — an uncertain economic picture whose tentacles don't fail to touch places such as Butler.

AK Steel has been a pillar of the Butler area economy. The announcement about the new $21 million plant-improvment investment — coupled with the steel demand on the international front — indicates that that pillar remains solid.

Despite no projected additional jobs, many families here are justified in breathing a sigh of relief that the consistent work environment, upon which they for years have depended, will remain intact.

That's good news for Butler, but it's also good news for AK Steel and the solid marriage they've forged.

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