Moreover, the deal will ensure pellet volume commitments to AK Steel's blast furnaces as well as Cleveland-Cliffs' Toledo hot briquetted iron (HBI) facility. This will complement Cleveland-Cliffs' existing long-term agreements with other key integrated steel producers for minimum volume pellet offtake. Additionally, the potential startup of pig iron producing at AK Steel's facility in Ashland, KY, will create future opportunities for pellet demand along with other metallics products without substantial additional capital expenditures. The transaction is expected to offer considerable operational synergies, which will boost long-term value for investors. It is projected to generate around $120 million of annual cost synergies that will be fully realized within the first 12 months post deal closure. This is likely to come from consolidation of corporate functions, procurement and energy cost savings, reduction of duplicate overhead costs as well as operational and supply chain efficiencies.