Capital for AK's Butler plant

AK Steel Holding Corp. said it would invest $55 million at plants in Butler and in Zanesville, Ohio, to increase by 12 percent production capacity for high quality, grain-oriented electrical sheet steels. AK Steel cited strong demand for electrical steel products by the electrical generation and transmission markets. Combined with a $14 million investment at the Butler Works announced earlier this year, production capacity for electrical steel products will increase to about 335,000 tons per year by mid-2008, the Middletown, Ohio-based steelmaker said. Separately, the company said its board has approved an early contribution of $75 million to its pension trust fund.

MFS deal off the table

Mellon Financial's designs on MFS Investment Management appear to be at an end after MFS' Canadian parent, Sun Life Financial Inc., said it would not sell the Boston-based money management unit. Mellon and Wachovia Corp. were thought to be eyeing MFS, the nation's oldest mutual fund company. Mellon, which owns mutual fund company Dreyfus Corp., wants to boost its money management unit. It also is believed to be weighing a run at Putnam Investments, another Boston fund manager.

Treasury bill rates rise

The Treasury Department yesterday auctioned $17 billion in three-month bills at a discount rate of 4.990 percent, up from 4.940 percent last week. Another $15 billion in six-month bills was auctioned at a discount rate of 4.975 percent, up from 4.935 percent last week.

Gas prices at 10-month low

The price of gasoline has fallen to its lowest level in more than 10 months. The federal Energy Information Administration yesterday said U.S. motorists paid $2.21 a gallon on average for regular grade last week, a decrease of 1.8 cents from the previous week. Pump prices are now 40 cents lower than a year ago and have plummeted by more than 80 cents a gallon since the start of August. The previous 2006 low for gasoline was set in the first week of January, when pump prices averaged $2.238. In the week ended Dec. 5, 2005, prices averaged $2.19.

State's jobless rate slips

The state's jobless rate fell three-tenths of a point to a seven-month low of 4.6 percent in September, matching the nation's jobless rate for the month, the state Department of Labor and Industry said. A separate report said businesses in the state added only 5,100 jobs in the month, but that still marked the sixth consecutive monthly gain, pushing the number of nonfarm jobs in the state to a new record high of 5,764,600.

Regional economic index flat

The Institute for Supply Management's Regional Economic Index barely budged last month, slipping 0.01 percent to 52.455 as higher production and employment levels were offset by fewer new orders and shrinking backlogs. The index stood at 52.006 a year ago; a reading above 50 represents expansion.

Bayer unit expands

Bayer MaterialScience said it would buy Ure-Tech Group of Taiwan for an undisclosed amount. Ure-Tech makes thermoplastic polyurethane, which is used to insulate refrigerators among other applications. It generated sales of about $55 million last year and employs about 180.

Also in business ...

Northwest Bancorp Inc., Warren, posted third-quarter net income of $12.9 million, or 26 cents per diluted share, vs. $14 million, or 27 cents, a year ago. Separately, the company increased the quarterly dividend by 2 cents a share to 20 cents, payable Nov. 16 to shareholders of record Nov. 2 ... Koppers Holdings promoted Kevin J. Fitzgerald, vice president and general manager, Carbon Materials & Chemicals Division, to the newly created position of senior vice president, Global Carbon Materials & Chemicals ... U.S. Steel today officially opens its new research and technology center at 800 East Waterfront Drive in Munhall. The center employs 110 ... II-VI Inc. reported fiscal first-quarter net income of $7.5 million, or 25 cents per diluted share, vs. $6.75 million, or 23 cents, a year ago.