AK Steel Holding Corporation (NYSE:AKS) reported that it will hike base prices for its stainless steel offerings, effective with consignments on September 3, 2017. For specialty sheet and strip, commodity sheet and strip, tube sheet and pipe and strip products, the hike will be achieved through a decline in the functional discount of 2%. For other stainless steel items, base prices will be hiked by $40 per ton.
Earlier in this month, AK Steel reported that it has closed its acquisition deal of Precision Partners Holding Company. The acquired entity is a major North American provider of tooling, engineering and cold and hot stamped products, with an extensive portfolio of highly engineered offerings. Headquartered in Ontario, the firm employs over 1,000 employees, including around 300 skilled tool makers and engineers, across eight plants in Alabama, Kentucky and Ontario.
Precision Partners specializes in die and tool engineering and the manufacturing of complex stamped components for the automobile segment. Roger Newport, the CEO of AK Steel, reported that they are extremely delighted with the current successful business and platforms that Precision Partners brings to their firm, and even more thrilled about how well this deal positions them to expand their capabilities to offer light weighting solutions to their automotive clients.
This deal goes well with AK Steel’s long-term plan and they consider it will play a vital role in further solidifying the long-term performance of their firm. The acquisition complements company’s focus as a major provider to clients needing the highest quality stainless, electrical steel and carbon products and tubular steel offerings.
In the last trading session, the stock price of AK Steel Holding gained 0.55% to close the day at $5.50. The gains came at a share volume of 16.11 million compared to average share volume of around 20 million. After the recent gains, the market cap of firm was recorded at $1.73 billion.