Service Centers

ATI Considering US Steel as Potential Joint Venture Partner
Written by Sandy Williams
September 23, 2014
Allegheny Technologies, Inc. (ATI) is considering US Steel as a potential partner for a joint venture on its new hot-rolling and processing facility in Brackenridge, Pa., according to equity research firm Cowen and Co.
ATI, a diversified specialty materials and components producer, is working with two steel mills to secure the joint venture, according to ATI spokesperson Dan Greenfield, but is not releasing names at this time. The $1.2 billion facility would ideal for processing Generation 3 and ultra high strength steels says Cowen analysts.
Start up and qualification costs for the HRPF were $2.3 million in Q1 and $4.0 million in Q2. ATI expects pre-tax start-up costs of $12 million for Q3 as the hot commissioning process ramps up.
Cowen says a joint venture would be in the range of $400 to $600 million over a period of time with the partners sharing time at the mill. AK Steel and ArcelorMittal are also said to be potential partners but Cowen analysts say US Steel would be the geographical favorite.

Sandy Williams
Read more from Sandy WilliamsLatest in Service Centers

Galvanized steel prices slip while demand remains flat: HARDI
Galvanized steel prices dipped to ~$48/hundredweight in August from the $50-59/hundredweight range during the month of July.

Mill Steel relocating Texas facility to Port of Houston
Mill Steel Co. announced it is relocating its Houston operations to a bigger facility at the Port of Houston.

Olympic taps Anza for GM role at Connecticut location
Olympic Steel Inc. has promoted Vincent Anza to the role of general manager for its Milford, Conn., facility.

Friedman Industries’ profits jump in its fiscal Q1
Friedman Industries’ fiscal first-quarter earnings nearly doubled from a year ago.

Russel Metals hits recent revenue high as Q2 shipments surge
Russel Metals posted its strongest quarterly revenue in three years, fueled by higher steel prices, steady demand, and near-record shipments across its service center network.