CINCINNATI — AK Steel Corp. has filed a federal lawsuit against a customer for allegedly nonpayment of nearly $3 million worth of stainless steel products.

According to the suit filed Monday, Aug. 24, in the U.S. District Court in the Southern District of Ohio, the local steelmaker is suing Camden, N.J.-based Jermax Inc., also known as Gulf & Northern Trading Corp., for failure to pay $2,980,026.47 for material shipped by AK Steel to the company between Dec. 12, 2008, and Jan. 22 of this year.

AK Steel said GNTC agreed to pay within 30 days after invoice for products in received. In late January, the company purportedly told AK Steel that its lending bank had terminated its line of credit, rendering it unable to pay. GNTC officials met at AK’s West Chester Twp. offices in March and April to discuss payment, but were unable to reach an agreement to resolve the issues, according to the filing.

AK Steel is seeking the amount owed for products shipped to GNTC as well as 18 percent interest as outlined in the company’s standard commercial terms and conditions agreement. It also is seeking to freeze the company’s assets and allow AK to collect on any assets it alleges were fraudulently transferred in addition to its legal fees incurred by the lawsuit.

GNTC has been a customer of AK Steel since May 2007.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.