Pittsburgh-based Allegheny Technologies Incorporated (ATI), a diversified specialty materials and components producer – dealing in such materials as titanium & titanium alloys, stainless steel, nickel-based alloys and superalloys – has announced that it is taking rightsizing actions to align its Flat Rolled Products (FRP) operations to the challenging business conditions for its commodity products. The actions improve ATI’s focus on differentiated flat-rolled products that serve growing global markets.
Specific actions announced were:
Idling of the standard stainless melt shop and sheet finishing operations at the Midland, PA facility, which is expected to be completed in January 2016.
Idling of grain-oriented electrical steel (GOES) operations, including the Bagdad, PA facility, which is expected to be completed by April 2016.
The future restart of the Midland and GOES operations, respectively, will depend on future business conditions and ATI’s ability to earn an acceptable return on invested capital on products produced at these operations.
Due to challenging market conditions impacting commodity flat-rolled products, ATI is conducting an impairment review of affected long-lived assets in the FRP business, including goodwill, and will provide an update on this review prior to the January 2016 news release announcing fourth quarter 2015 results.