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
Ryerson swung to loss in ’24, but saw fortunes improve over the last month
Ryerson swung to a loss in the fourth quarter, but has seen a turnaround in the last 30 days.
Despite policy uncertainty, Reliance upbeat on ’25
Reliance noted that it is about 95% domestically sourced.
Russel Metals posts solid quarter, doesn’t expect direct impact from tariffs
Russel Metals said on Thursday that it doesn’t expect to be directly impacted by US tariffs on Canadian steel. The Mississauga, Ontario-based distributor made the comments in its quarterly earnings report on Thursday. The company doesn’t export significant volumes to the US, it said, and thus doesn’t expect to be directly impacted. However, “The primary […]
Friedman logs quarterly loss amid ‘challenging conditions’
Friedman swings to a loss in its fiscal third quarter of 2025.
Tampa Steel Conference: Service centers more upbeat about 2025
If 2021 and 2022 was the party, 2024 is the morning after, one panelist said.