ATI and Tsingshan Announce Formation of Joint Venture
March 01 2018 - 7:30AM
Business Wire
Allegheny Technologies Incorporated (NYSE: ATI) stated today
that it formed its previously announced 50-50 joint venture (JV)
with an affiliate company of Tsingshan Group (Tsingshan) to produce
60-inch wide stainless sheet products for sale in North America.
Initial customer shipments are expected in the first half of
2018.
“We are pleased that we received all required regulatory and
anti-trust clearances in a timely manner and are excited about the
long-term opportunities for profitable growth that this JV
represents for ATI,” said Rich Harshman, ATI’s Chairman, President
and Chief Executive Officer. “We continue to believe that this JV
will offer very cost competitive stainless sheet products for the
North American market through a unique combination of Tsingshan’s
unparalleled Indonesian mining, refining, and castings assets,
along with ATI’s innovative, low-cost Hot Rolling and Processing
Facility (HRPF), and the JV’s unique Direct Roll Anneal and Pickle
(DRAP) facility in Midland, PA.
"This JV will directly create approximately 100 manufacturing
jobs in Western Pennsylvania with industry-leading compensation and
benefits. It supports ATI’s significant investment in U.S.
manufacturing operations, particularly at our world-class HRPF,
which will provide value-add processing services for the JV’s
finished products. Today, ATI’s Flat Rolled Products group employs
more than 2,000 people in the U.S., and each will benefit from a
business that is sustainably profitable and growing. This JV helps
to lay the foundation for those longer-term objectives.
Additionally, the JV supports hundreds of U.S.-based jobs in the
communities located along the supply chain.”
“Our customers are enthusiastic about receiving 60-inch wide
stainless sheet products finished on the JV’s DRAP line and have
provided positive feedback on product quality from their initial
trial materials. The 60-inch wide product offering is consistent
with ATI’s well recognized reputation for service and quality
excellence,” said Bob Wetherbee, Executive Vice President Flat
Rolled Products Group. “The quick slab-to-coil production cycle
time, coupling the power of the HRPF with the DRAP finishing line,
is a game-changer for our industry.”
The JV will be treated as a 50-50 equity investment with the
partners sharing JV operating profit and cash flows. JV sales will
not be consolidated into ATI’s sales. ATI’s FRP segment will
benefit from the conversion services provided by ATI’s HRPF to the
JV, increased utilization of the HRPF, and ATI’s share of the JV
operating profits.
Creating Value Thru Relentless Innovation™
ATI is a global manufacturer of technically advanced specialty
materials and complex components. With revenue of $3.5 billion for
the twelve month period ending December 31, 2017, our largest
market is aerospace & defense, particularly jet engines. We
also have a strong presence in the oil & gas, electrical
energy, medical, automotive, and other industrial markets. ATI is a
market leader in manufacturing differentiated specialty alloys and
forgings that require our unique manufacturing and precision
machining capabilities and our innovative new product development
competence. We are a leader in producing powders for use in
next-generation jet engine forgings and 3D-printed aerospace
products. ATIMetals.com
Tsingshan Group, founded in 1998, is a multi-national fully
integrated stainless steel producer engaged in nickel ore mining,
ferronickel and ferrochrome smelting, stainless steel making, hot
rolling, and cold rolling with captive supportive power plants and
ports. Tsingshan produces stainless sheet, plate, bar, rod, wire,
pipe, and tube. Tsingshan Group, along with other partners, have
been investing significantly in Indonesia and India. Tsingshan
Group, as the global leader in the production of crude stainless
steel, produced 7.5 million tons of crude steel in 2017. Tsingshan
Group continues in persistent pursuit of the company culture of
“Dare to be the First, Incorruptible and Dedicated.”
Yongqing Limited Liability Company (Yongqing) is the Tsingshan
Group affiliated company mentioned in the first paragraph of this
news release.
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version on businesswire.com: http://www.businesswire.com/news/home/20180301005795/en/
Allegheny Technologies IncorporatedScott A. Minder,
412-395-2720
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