Allegheny Technologies Announces Expansion of its Nickel-based Alloy and Specialty Alloy Capabilities
September 08 2005 - 4:05PM
Business Wire
Allegheny Technologies Incorporated (NYSE:ATI) announced today an
expansion of its premium-melt nickel-based alloy, superalloy, and
specialty alloy production capabilities. These investments are
aimed at increasing ATI's capacity to produce these high
performance alloys used for aero-engine rotating parts; airframe
applications; oil and gas exploration, extraction, and refining;
and power generation land-based turbines and flue gas
desulfurization pollution control units. These incremental capital
investments of approximately $30 million over the next 15 months
will be funded from internal cash flow. Major projects of this
expansion, which is expected to increase ATI's premium-melt
capacity by approximately 20%, include: -- Upgrading and expanding
vacuum induction melt (VIM) capacity. VIM is a melting process
designed for premium grades with high alloy content that require
more precise chemistry control and lower impurity levels. --
Installation of two new electro-slag re-melt (ESR) furnaces and
three new vacuum arc re-melt (VAR) furnaces. ESR and VAR furnaces
are consumable electrode re-melting processes used to improve both
the cleanliness and metallurgical structure of alloys. "We expect
growth of approximately $70 million of annual revenue with
attractive after-tax returns from these capital projects when they
are implemented," said Pat Hassey, Chairman, President and Chief
Executive Officer of Allegheny Technologies. "These incremental
capital investments add premium-melt capacity to help maximize the
potential of our installed asset base and optimize market
opportunities for ATI. As a result of investments made during the
past several years, ATI has unparalleled finishing operations for a
broad range of high performance alloys in straight-length and
flat-rolled products. "These strategic investments to expand our
nickel-based alloy, superalloy, and specialty alloy product
capabilities are another milestone in profitably growing our high
performance metals business. This expansion follows our recently
announced $100 million investment to grow ATI's titanium product
capabilities." Market demand for premium-melt nickel-based alloy,
superalloy, and specialty alloy products is currently strong and is
expected to continue to grow: -- Demand for ATI's premium-melt
alloys from the aerospace market, for both aero-engine and airframe
applications, is expected to continue to be robust for the next
several years. The new generation of fuel efficient aircraft
increases the need for ATI's nickel-based superalloys and
high-strength specialty stainless alloys. -- Demand for ATI's
premium-melt alloys is strong from the oil and gas market for
sub-sea piping, banding straps for flow lines, umbilical,
instrumentation, and injection tubing. Deeper wells and more
corrosive conditions increase demand for premium-melt nickel-based
and specialty alloys. -- Demand for ATI's premium-melt alloys is
expected to be strong from the power generation market for
industrial gas turbines (IGT) and flue gas desulfurization (FGD)
pollution control equipment. Demand for FGD units at coal power
generation plants is expected to grow in the United States as a
result of legislation. In addition, strong demand is expected to
continue from Asia for both new power plants and upgrades of
pollution control equipment. Allegheny Technologies is a leading
producer of nickel-based alloys, superalloys, and specialty alloys.
ATI manufactures straight-length products (long products),
including ingot, billet, bar, and rod; and flat-rolled products,
including plate, sheet, and strip. ATI is a technology leader in
manufacturing, research and development for these products. ATI's
premium-melt products typically exhibit any of the properties of
high temperature resistance, high strength, and high temperature
oxidation resistance. Some examples of ATI's premium-melt alloys
include Nickelvac(R) 625, Altemp(R) 625, AL 625 HP(TM),
Nickelvac(R) 825, AL 825(TM), Altemp(R) 718, Allvac(R) 718,
Allvac(R) 718 Plus(TM), Altemp(R) HX, Altemp(R) A286, Vasco(R)15-5,
AL 15-5(TM), Vasco(R) 403, AL 276, AL 22, AL 255, AM 350(TM), and
AM 355(TM) alloys. For more information on ATI's broad range of
specialty alloys, visit www.alleghenytechnologies.com. This news
release contains forward-looking statements. These statements are
based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ
materially from those projected 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 Allegheny Technologies'
filings with the Securities and Exchange Commission. Allegheny
Technologies Incorporated is one of the largest and most
diversified specialty materials producers in the world with
revenues of approximately $2.7 billion in 2004. ATI has
approximately 9,000 full-time employees world-wide who use
innovative technologies to offer growing global markets a wide
range of specialty materials solutions. Our principle markets are
aerospace, construction and mining, chemical processing/oil &
gas, food equipment and appliance, automotive, electrical energy,
machine and cutting tools, and medical. Our products include
nickel-based alloys and superalloys, titanium and titanium alloys,
stainless and specialty steels, zirconium, hafnium, and niobium,
tungsten materials, silicon and tool steels, and forgings and
castings. The Allegheny Technologies website is
www.alleghenytechnologies.com.
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