Allegheny Ludlum Corp. has reached a settlement with federal and county agencies regarding alleged violations of the Clean Air Act at its Natrona, Wyoming, US melt shop. The agreement, announced by the federal Environmental Protection Agency and the US Department of Justice, calls for Ludlum, a subsidiary of Allegheny Technologies Inc. which makes speciality stainless steel, to pay a USD 1.6 million civil penalty. That penalty will be divided equally between the federal government and the Allegheny County Health Department. In addition, Allegheny Ludlum agreed to permanently cease steel-making operations at it Natrona facility no later than 30 November 2010. The Natrona melt shop works in conjunction with the nearby Brackenridge Works where finished stainless steel is produced. It is scheduled to close as part of a physical restructuring of the plant, which includes a consolidation of the Natrona and Brackenridge melt shops. That will be followed by construction of a hot strip mill expected to cost USD 1.5 billion.