AK Steel

(AKS) - Get Report

, a producer of flat-rolled carbon, stainless and electrical steel products and other steel products, said Monday its board approved a $55 million expansion project aimed at increasing production capacity for high quality, grain-oriented electrical sheet steels by about 12%.

The project will help meet continued strong market demand for electrical steel products used in electrical generation and transmission markets, the Middletown, Ohio-based company said.

The newly approved capital funds will be used to upgrade and modify existing production equipment at the company's Butler and Zanesville facilities.

In April, AK Steel announced a $14 million capital investment to increase electrical steel production capacity at its Butler Works. That project is expected to be completed in the first quarter of 2007. The investments, together, will increase production capacity for electrical steel products to about 335,000 tons a year by mid-2008.

This story was created through a joint venture between TheStreet.com and IRIS.