The agreement covers 860 production and maintenance workers at the steelmaker’s facility.

It was subject to ratification from the members of USW Local 1865 and will be in effect for 18 months, from when the current agreement expires on September 1, through to the beginning of March 2015.

“This agreement represents a step forward for the workers at Ashland and provides some stability for them and their families,” USW international vice president Tom Conway said.

“It’s a short-term agreement but that approach made sense given the current market conditions.”

The details of the agreement are yet to be disclosed but AK Steel president and chief executive officer James Wainscott said the company was pleased with the deal.

“The agreement continues to serve the interests of both the company and Local 1865 members in an increasingly competitive global steel industry,” Wainscott said.

Ohio-headquartered AK Steel produces steel in Ohio, Pennsylvania, Kentucky and Indiana and has a coal mining subsidiary that is developing metallurgical coal reserves in Pennsylvania.