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SunCoke commits $280M for coke plant this year

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By Jessica Heffner, Staff Writer Updated 1:01 PM Friday, February 5, 2010

MIDDLETOWN — Sunoco Inc., parent company of SunCoke Energy Inc., said it “remains committed” to building a coke plant in Middletown and plans to invest up to $280 million this year for its construction.

Included in its earnings report listing fourth quarter and full-year results, the company said it expects to have $840 million in capital spending this year. Of that, the company said $280 million has been earmarked for the Middletown Coke Company plant, which would be built off of Yankee Road in Middletown near Monroe’s border.

Since the project was announced nearly two years ago, the now estimated $360 million coke oven facility has been caught up in various permitting issues and civil lawsuits. The plant would supply metallurgical coke, a vital steelmaking raw material, to AK Steel’s Middletown Works for at least the next 20 years and add about 500 temporary and 75 permanent jobs to the area if built.

Thomas Golembeski, spokesman for SunCoke, said the company remains “fully committed to the plant in Middletown” and is just waiting to hear from the Ohio Environmental Protection Agency on the status of their air permit.

SunCoke has been issued a draft New Source Review air permit by the Ohio EPA. It is still under review by that agency. This is the second air permit the company has sought for the local plant.

Some of the $360 million designated for the plant has already been invested through preliminary site work. Golembeski said since the plant would take 15 to 18 months to build some of the cost “would be in 2010 presumably if we get our permit shortly and some of it would be in 2011.”

In terms of Sunoco’s earnings, its coke business generated $180 million in 2009, according to the report. The company had released guidance that it expected $215 million in net income for 2009 from its coke division, but delays on the Middletown project and coal price changes affected results, said Brian MacDonald, chief financial officer for Sunoco.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.

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WOW dagmar..I'm sorry about your family,but I worked out there and know lots of ARMCO employees (retirees) that have lived into their 80's and more.Maybe where they worked or genetics?Sorry again.

middsteve
7:14 AM, 2/7/2010

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Members of my family worked at the mill. Retired early with lung disease and died early after horrible and debilitating complications from lung disease. All I can say to you folks in Monroe, Middletown, etc. is breath in deeply every chance you get and maybe the end will come sooner and with less pain and distress.

dagmar
6:47 PM, 2/6/2010

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When I went to Monroe H.S. it seemed most of the kids dads worked there. I have to think some of them worked in the coke plant.And as far as not knowing about ARMCO,it simply does not matter where you go in this area,you can see the mill. West Middletown,Todhunter rd,Rt 73 E coming into Trenton,Yankee Rd by the golf course.....pretty hard to miss.

middsteve
5:09 PM, 2/6/2010

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as fer cuncil ill vote fer anyone but big bully bob and his sidekick tracey. lookin ferward to 2011

smoking joe
3:34 PM, 2/6/2010

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Well I consider myself an educated young person who has ambition and I am not going to sit back and let Monroe become a dump for pollution. There is a movement of educated people trying to protect Monroe and this fight is not over. We have investments to protect and we are not rolling over. High Tech jobs are what we need in Monroe and not dust covered warehouses. A new council led by CMSquare will change the face of Monroe. Wait and see! Just ask him.

ADH
11:43 AM, 2/6/2010

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