April 27, 2016

ATI to Cut Flat-Rolled Workforce

Allegheny Technologies, Inc., Pittsburgh, will cut one-third of its Flat-Rolled Products salaried workforce in the next phase of its restructuring, eliminating about 250 positions. The cuts are expected to produce annualized savings of about $30 million, beginning in the third quarter. The company will incur a $9 million severance charge in the second quarter.

“Reducing our flat-rolled products business’ dependence on unprofitable commodity products is a difficult process,” says Rich Harshman, chairman, president and CEO. “We 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. 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.”

The company has idled its Midland, Pa., stainless steel facility to reduce exposure to commodity stainless steel sheet. Its GOES operation was scheduled to be idled by the end of April. Restarts of the idled operations are dependent on future business conditions and ATI’s ability to earn an acceptable return on invested capital, executives say.

“We are in the process of creating a smaller, more agile, streamlined, cohesive and efficient FRP business that will focus on products and markets with significant technical barriers to entry. The reduction in FRP’s 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,” Harshman says.


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Tuesday, December 12, 2017