Iron Range taconite producer Cleveland Cliffs completed its stock purchase of AK Steel Holding Corp. Friday, creating a full-services company that for the first time will be able to mine ore, manufacture iron taconite pellets and produce actual steel under one entity.
The combined company will be led by Cliffs' Chief Executive Lourenco Goncalves.
The acquisition moves Cliffs into a new industry category because it is now considered a soup-to-nuts "fully integrated" iron and steel producer. Previously Cliffs main business was in mining iron and creating iron based products such as taconite pellets, or hot-briquetted iron.
With the addition of AK Steel it can now convert those iron products directly into steel. The move is a bit of a coup for Cliffs, which is headquartered in Cleveland, but runs several operations in Minnesota including United Taconite in Forbes/Eveleth and Northshore Mining in Silver Bay. It also partly owns Hibbing Taconite.
AK Steel is based near Cincinnati and makes carbon and stainless steel tubing products, hot- and cold-stamped components and die design and tooling products.
Dee DePass • 612-673-7725
