PITTSBURGH--(BUSINESS WIRE)--
Allegheny Technologies Incorporated (NYSE: ATI) today announced that the company filed for an exclusion from Section 232 tariffs on behalf of its recently formed Allegheny & Tsingshan Stainless joint venture (JV). The JV imports semi-finished stainless slab products from Indonesia. These slabs are currently subject to the 25% tariffs recently levied on all stainless steel products imported into the United States.
“This innovative JV is a great example of a capital efficient, globally competitive supply chain – one that leverages ATI’s world class Hot Rolling and Processing Facility (HRPF) located in Brackenridge, PA, the JV’s Direct Roll Anneal and Pickle (DRAP) Facility in Midland, PA and Tsingshan’s extensive Indonesian resources and capabilities,” said Rich Harshman, ATI’s Chairman, President and CEO.
Midland’s DRAP facility utilizes an efficient, continuous automated process for production of stainless sheet products using technology that has been globally available and used in production outside the U.S. for years. ATI previously idled the DRAP facility in February 2016 due in part to dumped and subsidized stainless imports from China. Leveraging Tsingshan’s Indonesian production of semi-finished stainless slabs enables both the restart of the DRAP facility, as well as more efficient and cost effective operation of ATI’s HRPF, thereby creating and supporting skilled manufacturing jobs in the U.S.
“This JV, which began commercial operations earlier this year, will directly create up to 100 high-paying manufacturing jobs in Western Pennsylvania and will support a significant number of workers and businesses along its U.S. supply chain, including ATI’s own Flat Rolled Products U.S.-based business. We are confident that our recently-filed tariff exclusion request clearly satisfies the Commerce Department’s stated criteria. Specifically, there is no, nor has there ever been a, merchant market for stainless semi-finished products (slabs) in the U.S., and the financial benefits from the JV directly support ATI’s important role in providing innovative materials and components for critical U.S. defense applications,” concluded Harshman.
The tariff exclusion review will take up to 90 days to complete once the request is submitted based on published guidelines from the U.S. Commerce Department. The JV will continue operations during the review process.
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.
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ATI is a global manufacturer of technically advanced specialty materials and complex components. With revenue of $3.5 billion for the twelve month period ending December 31, 2017, 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. We are a leader in producing powders for use in next-generation jet engine forgings and 3D-printed aerospace products. ATIMetals.com
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