Service Centers

ATI Considering US Steel as Potential Joint Venture Partner

Written by Sandy Williams

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.

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