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The settlement agreement, which established a Voluntary EmployeesBeneficiary Association (VEBA) trust, was reached on October 8, 2007, and wassubject to approval by the court. The agreement covers approximately 4,900current Middletown Works retirees. The retirees had been represented by theAEIF independent labor union, or its successor union, the IAM, during theiremployment with the company.
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"We are very pleased that the court has approved this landmark agreement,"said James L. Wainscott, chairman, president and CEO of AK Steel. "Thecourt's approval allows the parties to establish an innovative VEBA trust tofund the health care benefits for this group of retirees."
Under terms of the agreement, AK Steel will fund the VEBA trust andtransfer all of its retiree health care (OPEB) obligations for the coveredretirees to the trust. The trust will be managed solely by the retirees'designees and will be utilized to fund the retirees' covered benefits. Inexchange for the funding, AK Steel will have no further liability related tothe Middletown Works retirees covered by the agreement.
The company said that the settlement will reduce by about one-half thecompany's total current OPEB liability of approximately $2 billion.
About AK Steel
AK Steel produces flat-rolled carbon, stainless and electrical steels,primarily for automotive, appliance, construction and electrical powergeneration and distribution markets. The company employs about 6,500 men andwomen in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler,Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporateheadquarters in West Chester, Ohio. Additional information about AK Steel isavailable on the company's web site at www.aksteel.com.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 300 menand women in plants in Walbridge, Ohio and Columbus, Indiana. AK Tubeproduces carbon and stainless electric resistance welded (ERW) tubular steelproducts for truck, automotive and other markets. Additional informationabout AK Tube LLC is available on its web site at www.aktube.com.
SOURCE AK Steel
