ATI and NLMK Expand Carbon Steel Hot-Rolling Conversion Agreement
PITTSBURGH--(BUSINESS WIRE)--Nov 13, 2019--
Allegheny Technologies Incorporated (NYSE: ATI) announced today it signed another 1 year agreement to extend and expand carbon steel hot-rolling conversion services for NLMK USA at its world-class Hot-Rolling and Processing Facility, or HRPF, located in Brackenridge, PA. The continuation of this relationship is an important element of ATI’s drive to achieve improved and sustainable profitability in its Flat Rolled Products segment.
“This contract extension moves us another step closer to our long-standing goal to increase HRPF capacity utilization in a capital-efficient manner,” said Robert S. Wetherbee, President and Chief Executive Officer. “It provides a consistent source of operating cash flow to help fuel ATI’s longer-term balance sheet improvement initiatives.”
ATI expects 2020 volumes covered under this agreement to meaningfully increase over 2019 levels. This agreement includes significant guaranteed volumes and fixed fee-per-ton revenues. It provides NLMK USA with continued access to the HRPF’s capabilities for conversion of their broad range of carbon steel grades through December 2020.
“We are pleased to expand our relationship with NLMK USA. They truly appreciate, and have validated, the value proposition provided by our HRPF and the substantial benefits that it brings to their end customers,” said Kim Fields, ATI’s Executive Vice President, Flat Rolled Products. “We look forward to continued growth in this relationship over time.”
ATI’s HRPF is one of the world’s most powerful hot-rolling mills, enabling production of materials that maintain high-strengths at high temperatures. The HRPF makes possible unprecedented control and tailoring of sheet and plate microstructures and other physical attributes to meet specific performance requirements, at shorter cycle times, in wider sizes, with incredible efficiency.
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ATI is a global manufacturer of technically advanced specialty materials and complex components. ATI revenue was $4.1 billion for the twelve-month period ended Sep. 30, 2019. Our largest markets are 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. See more at our website ATImetals.com.
NLMK USA is one of the leading steel companies in the United States. With production sites at NLMK Indiana, NLMK Pennsylvania and Sharon Coating (NLMK Pennsylvania’s galvanizing operations), NLMK USA produces flat rolled steel that is essential to modern manufacturing. The company supplies high quality steel coils to the construction, automotive, pipe and tube, and heavy equipment industries in the United States. See more at www.us.nlmk.com.
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CONTACT: Investor Contact:
Scott A. Minder
KEYWORD: PENNSYLVANIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: OTHER NATURAL RESOURCES MINING/MINERALS AEROSPACE MANUFACTURING NATURAL RESOURCES OTHER MANUFACTURING STEEL
SOURCE: Allegheny Technologies Incorporated
Copyright Business Wire 2019.
PUB: 11/13/2019 08:30 AM/DISC: 11/13/2019 08:30 AM