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County officials react to sale

As the news of AK Steel's imminent sale spread through the community Tuesday, elected officials offered indeterminate reactions.

“Wait and see and hope for the best,” was how Leslie Osche, chairwoman of the county commissioners, described her position immediately after learning of the merger agreement between Cleveland-Cliffs, an iron-ore producer, and AK Steel.

“From a local perspective, I'm still trying to understand the implications for Butler County,” Osche said, “but I have not spoken to Mark Gordon yet.”

Gordon is the county's chief of economic development and planning. He gave the commissioners a little background on Cleveland-Cliffs following a Tuesday morning call with Wall Street analysts discussing the sale.

Gordon retired from his position as general manager of AK Steel's Butler Works before being hired by the county in 2017.

Gordon was unable to comment directly to the Eagle due to a nondisclosure agreement he signed with AK Steel upon his retirement.

After hearing from Gordon, Osche said, “My take has not changed.”

“Based on all my conversations today I remain hopeful,” Osche said. “We stand ready to work with the new leadership of Cleveland-Cliffs.”

Kevin Boozel, another county commissioner, spoke to the Eagle after Gordon got back to the commissioners.

'We want to be partners'

“We had a conversation with Mark this morning,” Boozel said. “We want to be partners. We know how important AK Steel is to our county and community.”

Boozel said he was optimistic about the sale.

“If they're buying up plants, that's got to tell you something,” Boozel said. “Maybe they're going to streamline their production.”

He, too, called for patience in analyzing the deal's eventual outcomes.

“I think it would probably behoove us to let the dust settle a little bit,” Boozel said.

As did Kim Geyer, the county's third commissioner.

“I'm hoping for the best for AK Steel as well as Butler County as a whole,” Geyer said.

She said she hopes the Cleveland-based company might allow the commissioners to visit.

“These things affect and disrupt people's lives,” Geyer said. “I know we're all very concerned for everybody's well-being.”

The trio expressed some optimism based on the specifics of what AK Steel's Butler Works location does. Osche noted that the company's announcement statement said AK Steel is “well-positioned to serve both the blast furnace and electric arc furnace segments.”

Butler's mill is known for its production of electrical steel, a steel product with electromagnetic properties that's commonly used in items such as transformers and motors.

Encouraging comment

Osche also was encouraged by a comment from a Cleveland-Cliffs executive citing the desirability of AK Steel's steel contracts in the automotive industry. The Butler plant, Osche said, produces the kind of high-strength steel used by the automotive industry.

State Rep. Marci Mustello, R-11th, is the representative whose district includes the Butler mill. She said she hopes residents aren't rattled by the news.

“I'm very proud of these workers in Butler,” Mustello said. “I'm just hoping this new company recognizes what they're getting in this acquisition with Butler Works. We are such a specialized steel-making facility here in Butler — hopefully, they recognize the value of what they purchased just with Butler Works and the electrical steel they make.”

U.S. Rep. Mike Kelly, R-16th, did not want to comment on the sale Tuesday. His communications director, Andrew Eisenberger, said the representative intended to talk about it in the coming days.

“We're not ready to comment on this yet because it's not clear what the merger will mean for workers in Butler,” Eisenberger said. “We've reached out to AK Steel and are waiting to hear back.”

AK Steel is the fourth-largest employer in Butler County, according to the Pennsylvania Department of Labor and Industry, behind the federal government, Butler Healthcare Providers and Westinghouse Electric. Ten years ago, it was the third largest.

Eagle staff writer Jim Smith contributed to this report.

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