ATI and Tsingshan form joint venture

Allegheny Technologies Incorporated (ATI), the manufacturer of technically advanced speciality materials and complex components, 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.

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.
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