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
Brown Strauss Steel names new chief executive
Denver-based service center Brown Strauss Steel has named Kris Farris as CEO, effective Jan. 1. Farris has also joined the company’s board of directors. He previously served as president and COO of Brown Strauss Steel. Farris is taking over from Ryan Secrist, who held the CEO role since 2013. Secrist is stepping down from position […]
Galvanized buyers see glimmers of optimism amidst the chaos
Reflecting on 2024 and looking ahead to the new year, galvanized steel buyers on this month’s HARDI call expressed a mix of cautious optimism with lingering uncertainties.
SPS Companies and State Steel combine service center businesses
Steel fabricators and distributors SPS Companies and State Steel will be merging their service center businesses under the SPS Companies family of firms.
Norfolk Iron & Metal to buy Pennsylvania service center
The deal will expand Norfolk’s stainless steel sheet and coil product lines, the company said.
Lapham-Hickey acquires Michigan’s Alkar Steel
Alkar Steel and Processing supplies hot- and cold-rolled steel, high carbon spring steel, high strength-low alloy steel, coated and stainless steel products throughout the Midwest.