Allegheny Technologies Incorporated (ATI )has formed its previously announced 50-50 joint venture (JV) with an affiliate company of Tsingshan Group (Tsingshan) to produce 60-inch wide stainless sheet products for sale in North America. Initial customer shipments are expected in the first half of 2018.
The JV will be treated as a 50-50 equity investment with the partners sharing JV operating profit and cash flows. JV sales will not be consolidated into ATI’s sales. ATI’s FRP segment will benefit from the conversion services provided by ATI’s HRPF to the JV, increased utilization of the HRPF, and ATI’s share of the JV operating profits.
