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AK Steel Has No Intention of Suspending GM Shipments

Middletown, OH - AK Steel said in response to published news reports about litigation between AK Steel and General Motors (GM), that it has no intention of suspending shipments of steel products to GM. AK Steel confirmed that it is engaged in litigation over interpretation of terms of the supply contract between it and GM. That litigation involves a claim by AK Steel that GM has failed to satisfy its obligation under the parties' contract to reimburse AK Steel for its increased costs attributable to changes by GM in the scope of work covered by contract.

Reports that have suggested that AK Steel is seeking in that litigation, or otherwise, to suspend shipments are incorrect. To the contrary, in a letter AK Steel sent to GM prior to commencing its litigation, AK Steel stated, "we do not intend to suspend our performance under the contract as a result of our disagreement over the application of the equitable adjustment clause of the contract."

AK Steel said it and its predecessor companies have served GM for more than 90 years. GM has awarded AK Steel its Supplier of the Year award twice in recent years. Notwithstanding the litigation, AK Steel said it anticipates that it will continue its long and mutually beneficial relationship with GM for many years to come.

"Even in good relationships, disputes sometimes arise which the parties themselves cannot initially resolve," said Richard M. Wardrop, Jr., chairman and CEO of AK Steel.