Allegheny Technologies Inc. (ATI) announced in a press release that it has reached a definitive agreement to form a 50-50 joint venture (JV) with an affiliate company of Tsingshan Group, namely the Yongqing LLC. The US-based JV will be called Allegheny & Tsingshan.
The JV will manufacture and sell 60-inch-wide stainless sheet in North America. First shipments are expected in early 2018 from the previously idled DRAP finishing facility in Midland, PA, which will be owned and operated by the JV and run by approximately 100 employees. Tsingshan’s operation in Indonesia will supply the JV with “redi-to-roll” slabs with reduced raw material cost volatility.
ATI is a global manufacturer of technically advanced specialty materials and complex components. Its largest market is aerospace & defense, at 50 percent of total sales and led by jet engines. That market is followed by oil and gas, electrical energy, medical, and automotive markets.
Tsingshan Group, founded in 1998, is a multi-national fully integrated stainless steel producer. Its vertical integration includes mining, refining, and casting assets. In 2016, it produced 5.5 million tons of crude stainless steel. Tsingshan Group, along with other partners, have been investing significantly in Indonesia and India.