Item 2.05 Costs Associated with Exit or Disposal Activities



On November 14, 2019, the Board of Directors of TimkenSteel Corporation (the
"Company") approved a plan to close the Company's TimkenSteel Material Services
facility in Houston, Texas, in the first quarter of 2020.
The 100,000-square-foot facility currently employs approximately 100 people who
provide value-add and finishing services, primarily to customers that service
the energy market.
The Company will begin to execute a facility phase-down plan to be completed in
the first quarter of 2020. As a result of the plant closure, the Company expects
to realize approximately $6 million to $8 million of annual savings beginning in
2020.
The Company anticipates recognizing the following estimated charges related to
this plant closure:

•      severance and other employee termination charges of $0.5 million to $1
       million in the fourth quarter of 2019 with cash payments occurring in the
       first half of 2020;


•      inventory write-downs of $7 million to $12 million in the fourth quarter
       of 2019 based on expected results of the Company's phase-down plan; and


•      machinery, equipment, and information technology related asset non-cash
       accelerated depreciation of $7 million to $8 million, split relatively
       evenly between the fourth quarter of 2019 and first quarter of 2020.

The Company will finalize these charges during the fourth quarter of 2019 as management begins to execute the phase-down plan. In total, these actions are expected to result in estimated total charges of approximately $15 million to $20 million during the phase-down period, approximately $0.5 million to $1 million of which will be cash charges.

FORWARD LOOKING STATEMENTS Certain statements in this Current Report on Form 8-K (including statements regarding the Company's estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the federal securities laws. In particular, the statements regarding the Company's expectations for its closure of its TimkenSteel Material Services facility, including the amount and timing of cash and non-cash charges related to the closure, are forward-looking. The Company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including the nature and timing of employee terminations and amounts for charges relating to inventory, machinery, equipment, information technology and intangible assets that differ from the original estimates based on the final fair value determinations. Additional factors are discussed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Except as required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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