Allegheny Technologies Inc. (ATI) announced Thursday it has signed an agreement with NLMK USA to provide carbon steel hot-rolling conversion services at its hot-rolling and processing facility in Brackenridge, Pennsylvania. Slab shipments to ATI will begin immediately and increase to anticipated production levels in the first quarter of 2019. The agreement covers conversion services through December 2019.
“This agreement provides ATI with guaranteed fee-per-ton volumes and significantly increases the asset utilization” at the Brackenridge facility, said Bob Wetherbee, ATI’s executive vice president and CEO-designate. “We look forward to working with NLMK on additional growth opportunities.”
NLMK Chief Executive Bob Miller said use of ATI’s Brackenridge facility “enables us to increase the breadth of our product portfolio to better complement the products produced at our Sharon, Pa. and Portage, Ind. facilities.”
Miller said his company was attracted to ATI’s Brackenridge facility because of its capabilities and proximity to its customers.
“ATI and NLMK were able to structure a win-win agreement that will ultimately benefit NLMK’s end customers by providing high-quality and distinctive carbon flat-rolled products at competitive prices,” Miller said.