ATI Announces New Long-Term Purchase Agreement with Pratt & Whitney
July 25 2017 - 6:55AM
Business Wire
Allegheny Technologies Incorporated (NYSE: ATI) today announced
that it has signed a new Long-Term Purchase Agreement (LTPA) with
Pratt & Whitney (P&W), a United Technologies Corporation
(UTC) company, to supply isothermal forgings and nickel-based
powder alloys for next-generation jet engines. The LTPA, which
builds upon the Master Terms Agreement that ATI entered into with
UTC last year, begins in 2017 and continues for the life of the
engine programs. For the period 2017 to 2030, the LTPA is expected
to generate revenues in excess of $1 billion.
“We are pleased to enter into this new agreement with Pratt
& Whitney,” said Rich Harshman, ATI’s Chairman, President and
Chief Executive Officer. “Demand for P&W’s game-changing
PurePower® Geared Turbofan™ engine (GTF) is scheduled to grow
dramatically into the next decade and beyond in support of
next-generation narrowbody aircraft build rates. Through this
agreement, ATI significantly increases our content on the GTF
engine as well as on the P&W F135 engine for the Joint Strike
Fighter program.
“We believe this LTPA recognizes our leading technologies, broad
manufacturing capabilities, and operating reliability within the
jet engine supply chain made possible by ATI’s integrated
capabilities from nickel-based alloy powders through isothermal
forgings to machined parts. The new agreement further demonstrates
our ability to meet the Aerospace and Defense market’s demand for
innovative products that create value for our customers and
shareholders and enable ATI’s incremental growth on next-generation
jet engine platforms,” said Harshman. “In addition, this agreement
puts ATI in a strong position to power the future of aviation. Our
commitment to UTC’s Supplier Gold Program will help assure we are a
part of this future.”
"Our suppliers are a critical part of our production capacity.
Agreements like this secure sources of parts and components for
years to come and ensure the capacity investments to support our
production ramp," said Sam Abdelmalek, Pratt & Whitney vice
president, Global Supply Chain. “We have tremendous growth ahead,
and suppliers like ATI that are willing to sign up to our
contractual governance, commitment to cost competitiveness and
continuous improvement will continue to have opportunities to grow
with us. UTC's Supplier Gold Program is an important part of the
company’s strategy to develop a world-class, integrated supply
chain. I am proud of the work our Gold suppliers have done to help
position Pratt & Whitney for the future.”
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management's current
expectations and include known and unknown risks, uncertainties and
other factors, many of which we are unable to predict or control,
that may cause our actual results, performance or achievements to
materially differ from those expressed or implied in the
forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from
those projected in the forward-looking statements is contained in
our filings with the Securities and Exchange Commission. We assume
no duty to update our forward-looking statements.
About Pratt & Whitney
Pratt & Whitney, a division of United Technologies
Corporation, is a world leader in the design, manufacture and
service of aircraft engines and auxiliary power units. United
Technologies Corp. based in Farmington, Connecticut, provides
high-technology systems and services to the building and aerospace
industries.
Creating Value Thru Relentless Innovation™
ATI is a global manufacturer of technically advanced specialty
materials and complex components. 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.
ATI produces nickel-based alloys and superalloys, titanium alloys,
specialty alloys, stainless steels, and zirconium and other related
alloys in many mill product forms. We also are a leader in
producing nickel-based alloy and titanium-based alloy powders for
use in next-generation jet engine forgings and 3D-printed products.
ATIMetals.com
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version on businesswire.com: http://www.businesswire.com/news/home/20170725005153/en/
Allegheny Technologies IncorporatedDan L. Greenfield,
412-394-3004www.ATIMetals.com
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