AK Steel to Build World-Class Research and Innovation Center; Names New Vice Presidents of Research and Innovation, and Sales and Customer Service

AK Steel (NYSE: AKS) todayannounced that it will build a new, world-class Research and Innovation Centerin Middletown, Ohio. The 120,000 square foot facility will be constructed ona 15-acre site located in the Cincinnati – Dayton growth corridor alongInterstate 75. The estimated project cost is $36 million. Rendering of AK Steel's new Research and Innovation Center to be built inMiddletown, Ohio.The new Research and Innovation Center will replace the company's existingresearch facility that is located at another site in Middletown. AK Steel'slargest steel manufacturing plant is also in Middletown, and the company'scorporate headquarters is in nearby West Chester, Ohio, a northern suburb ofCincinnati. "Construction of this new Research and Innovation Center underscores AKSteel's strong commitment to the future of steelmaking in America and to ourcompany's continued industry leadership as a technological innovator in thesteel business," said James L. Wainscott, Chairman, President and CEO of AKSteel. "The new center will be customer-focused, providing advanced technicalsupport to our valued customers, as well as developing new and improved steelproducts for a number of our markets."Mr. Wainscott noted, "Our talented researchers, scientists and engineers arealready working to develop such innovative products as next-generationAdvanced High Strength Steels to help automotive customers design lighter,more fuel-efficient vehicles that maintain superior strength and safetyperformance, high efficiency electrical steels that will help the nation'selectricity grid become more energy-efficient, and new stainless steels thatoffer superior corrosion resistance for a wide variety of applications. Thenew research and innovation center will enhance our capabilities to bringthese products to the marketplace."Mr. Wainscott added, "We greatly appreciate the support and cooperation of theState of Ohio, City of Middletown, Warren County Port Authority, JobsOhio, andREDI (Regional Economic Development Initiative) Cincinnati, in helping to makethis project a reality. While we considered strong proposals from a number oflocations, including several in other states, we are very pleased thatMiddletown – where our company was founded more than 100 years ago – emergedas the clear best option for this investment in AK Steel's future."The new facility will be home to the company's approximately 75 researchers,scientists and engineers who will perform cutting-edge research, applicationsengineering, advanced engineering, product development, and customer technicalservices. The facility will also house pilot lines that simulate thecompany's steel manufacturing operations, ranging from melting and casting, tohot- and cold-rolling, to final finishing. The pilot lines are used forresearch, enhancing existing products, problem-solving in production, andexperimentation for new and improved products.AK Steel said groundbreaking for its new research and innovation center isplanned for the late spring or early summer of 2015. The project is subjectto final state and local government approvals.Executive AnnouncementsIn conjunction with today's announcement that AK Steel will build a newResearch and Innovation Center, the company also announced two changes inexecutive leadership, effective immediately: o Eric S. Petersen, 46, has been named Vice President, Research and Innovation. Mr. Petersen was previously Vice President, Sales and Customer Service. "Eric brings extensive customer-oriented research and technical experience to this critical new position for our company," Mr. Wainscott said. "We look forward to his valuable leadership as we construct our new facility and focus our company's research and innovation efforts going forward." o Scott M. Lauschke, 45, has been named Vice President, Sales and Customer Service. Mr. Lauschke joins AK Steel from his previous position as Vice President and General Manager of AFGlobal Corporation and spent 15 years at The Timken Company in a variety of leadership roles. Mr. Wainscott said, "We welcome Scott to AK Steel. His strong sales background, leadership skills and industry experience will help ensure that we continue to achieve our goal of serving customers better than any other steelmaker."Mr. Petersen has been appointed to the newly-created position of VicePresident of Research and Innovation. In this role, he will have overallresponsibility for the design and construction of the new facility, and hewill lead AK Steel's efforts to provide outstanding technical service to ourcustomers, continually improve our existing product offerings, and develop newand innovative steel products for the future. He will have responsibility forthe Customer Technical Services, Product Development and ApplicationsEngineering, Research and Innovation, and Research Planning functions. Hewill report to Jim Wainscott.Mr. Petersen began his career with the company in 1991 at Middletown Works,rising to various operating and quality control positions in the 1990's. Hewas promoted to General Manager, Rockport Works in the year 2000, and becameGeneral Manager, Carbon Steel Technology in 2004. He was named GeneralManager, Quality Assurance in 2006, Director, Customer Technical Services andResearch in 2007, Director, Research and Innovation in 2010, and Director ofSpecialty and International Sales in 2012. He was named Vice President, Salesand Customer Service in 2013.He is a past member of the Board of Directors of Hill Top Equestrian Center, anon-profit organization dedicated to reaching at-risk youth, and has heldnumerous other volunteer leadership positions working with at-risk youth andproviding equi-therapy to children with disabilities.Mr. Petersen holds a Bachelor of Science degree in Metallurgical and MaterialsScience Engineering from the Colorado School of Mines. Mr. Lauschke joins AK Steel with more than 20 years of experience in sales,customer service and operations in the metals industry. He will haveresponsibility for leading the Sales and Customer Service organization,including Carbon and Specialty Steel Sales, as well as Inside Sales, CustomerService and Inventory Planning, Products, Sales Planning and Coordination, andAK Steel International activities. He will report to Jim Wainscott.Mr. Lauschke's most recent position was Vice President and General Manager ofAFGlobal Corporation, a manufacturer of engineered products serving oil andgas, power generation, transportation, and industrial markets. He had fullresponsibility for the firm's Steel Industries subsidiary, including sales andmarketing and strategic business development. Prior to that, he was employedby The Timken Company in its Alloy Steel Business, most recently as GeneralSales Manager, Industrial. In this role, he managed top-line results and ledcommercial strategy development for Timken's largest business unit. His priorroles at Timken included Operations Manager, Special Finishing, along withSales Engineer and Account Manager, and Market Manager. Previously, he was aCustomer Service Engineer for Caparo Steel, and a Product Engineer and ProcessEngineer with Republic Engineered Steel.He has been active in his church, serving as a catechist, parish pastoralcouncil member, and in a number of other activities. In addition, he hasvolunteered as a coach for youth basketball and baseball, and also served withHabitat for Humanity and the Girl Scouts. Mr. Lauschke holds a Bachelor ofScience degree in Metallurgical Engineering from the Illinois Institute ofTechnology and an MBA from the University of Chicago.A Heritage of InnovationFor more than a century, the company has been an industry leader in steelinnovation. In 1910, AK Steel's predecessor company, Armco, Inc., establishedthe first facility in the steel industry devoted entirely to research, and thecompany has been on the leading edge of steel technology ever since. The many products and processes developed by the company throughout itshistory include pioneering the world's first continuous hot rolling sheet millin the 1920's. Its trailblazing research also led to the development ofvarious types of electrical steels used in power transmission and distributionequipment. The company helped revolutionize the automotive exhaust market inthe 1990's with the introduction of specific types of aluminized stainlesssteels. In recent years, AK Steel introduced ULTRALUME®, an Advanced High StrengthSteel designed to improve safety and light weighting of structural componentsin vehicles, and CHROMESHIELD® 22, a new nickel-free stainless steel withenhanced benefits and stable pricing for customers in the automotive and foodservice markets.