Ampco-Pittsburgh Subsidiaries to Implement Electrode and Refractory Surcharge
November 03 2017 - 8:22AM
Business Wire
Ampco-Pittsburgh Corporation (NYSE: AP) announced today that its
subsidiary, Union Electric Steel Corporation (“Union Electric
Steel”), will implement an electrode and refractory surcharge on
all forged rolls that it and its subsidiaries produce globally.
These subsidiaries include the acquired companies formerly
comprising the Åkers Group (“Åkers”). This temporary surcharge is
effective for all orders to be melted on or after January 1, 2018,
and for all new quotes.
The addition of this surcharge is necessary to offset the sudden
escalation in the cost of refractories and graphite electrodes,
which are both used in the electric arc furnaces (EAF) for the
melting and forging operations of Union Electric Steel.
Petroleum-based needle coke, used to produce graphite
electrodes, is in limited supply as a result of environmental
inspection-linked plant closures in China. Additionally, a key
electrode manufacturer located in the U.S. declared force majeure
on shipments following the impact of Hurricane Harvey.
Consequently, Union Electric Steel is implementing the surcharge of
$0.05 per pound of finished weight for all forged rolls
worldwide.
Rodney Scagline, President of Union Electric Steel, commented,
“The sudden rise in the price of EAF melt shop consumables has led
to unforeseeable increases in the cost to manufacture steel. These
material step changes in costs cannot be offset. Union Electric
Steel’s pricing must fairly reflect these sharp increases in costs
so that we can continue to invest in our quality and manufacturing
processes to deliver superior value to our customers.”
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation, through its operating subsidiary,
Union Electric Steel Corporation, is a leading producer of forged
and cast rolls for the worldwide steel and aluminum industries, as
well as ingot and open die forged products for the oil and gas,
aluminum, and plastic extrusion industries. Ampco-Pittsburgh is
also a producer of air and liquid processing equipment, primarily
custom-engineered finned tube heat exchange coils, large custom air
handling systems and centrifugal pumps. The Corporation operates
manufacturing facilities in the United States, Canada, United
Kingdom, Sweden, Slovenia, and China. Sales offices are located in
North and South America, Asia, Europe, and the Middle East.
Corporate headquarters is located in Carnegie, Pennsylvania.
The Private Securities Litigation Reform Act of 1995 (the “Act”)
provides a safe harbor for forward-looking statements made by or on
our behalf. This news release may contain forward-looking
statements that reflect our current views with respect to future
events and financial performance. All statements in this document
other than statements of historical fact are statements that are,
or could be, deemed forward-looking statements within the meaning
of the Act. In this document, statements regarding future financial
position, sales, costs, earnings, cash flows, other measures of
results of operations, capital expenditures or debt levels and
plans, objectives, outlook, targets, guidance or goals are
forward-looking statements. Words such as “may,” “intend,”
“believe,” “expect,” “anticipate,” “estimate,” “project,”
“forecast” and other terms of similar meaning that indicate future
events and trends are also generally intended to identify
forward-looking statements. Forward-looking statements speak only
as of the date on which such statements are made, are not
guarantees of future performance or expectations, and involve risks
and uncertainties. For Ampco-Pittsburgh, these risks and
uncertainties include, but are not limited to, those described
under Item 1A, Risk Factors, of Ampco-Pittsburgh’s Annual Report on
Form 10-K. In addition, there may be events in the future that we
are not able to predict accurately or control which may cause
actual results to differ materially from expectations expressed or
implied by forward-looking statements. Except as required by
applicable law, we assume no obligation, and disclaim any
obligation, to update forward-looking statements whether as a
result of new information, events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171103005397/en/
Ampco-Pittsburgh CorporationMelanie L. Sprowson,
412-429-2454Director, Investor Relationsmsprowson@ampcopgh.com
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