AK Steel also increased its environmental-related capital investments from $1 million in 2009 to $4.5 million last year. Capital costs include costs for property and equipment, McCoy said.
To the extent production increases, more goods are purchased related to emission control, he said. Shipments in 2010 were 5,660,900 tons of steel compared to 3,935,500 in 2009, according to AK.
Altogether, AK spent $123.2 million related to the environment last year, worth almost as much as its net operating loss last year of $128.9 million.
AK Steel considers it a major expense. It’s a cost of doing business and as a policy, the steelmaker fully intends to comply with environmental laws, McCoy said.
“And as we demonstrated, we frequently go beyond what’s required,” McCoy said.
The West Chester Twp.-based company received Honda’s Green Factory Environmental Achievement Award in the category of Conservation of Natural Resources last year. The award recognizes AK Steel’s ongoing environmental restoration efforts at its plant in Coshocton, according to AK.
Last year, AK completed remedial activity of Dicks Creek in Middletown. There are still types of remedial work to be done this year, which AK estimates will cost $10.4 million. The design work still needs to be completed and approved for additional work at Dicks Creek after 2011, according to AK.
An example of a capital cost is the company’s new 175-ton capacity electric arc furnace at Butler Works in Pennsylvania. That project has an environmental control component, which will be included in AK’s environmental-related capital investments, McCoy said.
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