Allegheny Technologies Incorporated has recently declared the next phase in the restructuring of its Flat Rolled Products (FRP) operations with the reduction of approximately one third of FRPâs salaried workforce through the elimination of over 250 positions. This workforce reduction will be completed by the end of the second quarter 2016. These actions are expected to generate annualized cost savings benefits of over USD 30M beginning in the third quarter 2016.
âReducing our flat-rolled products businessâ dependence on unprofitable commodity products is a difficult process,â? said Rich Harshman, Chairman, President and CEO. âWe believe in U.S. manufacturing. However, it is difficult for a U.S.-based company to compete in the global commodity markets, particularly when significant global overcapacity exists for products such as commodity stainless steel sheet and grain-oriented electrical steel (GOES). The restructuring and right-sizing actions we are taking, while painful for our employees and our company, are necessary to help secure the future of ATI Flat Rolled Products.â?
âThe reduction in FRPâs salaried workforce is another step in our journey to return the FRP business to profitability as quickly as possible, and to execute our strategy for sustainable long-term profitable growth. We expect the FRP business to be modestly profitable in the second half of 2016.â?
