Metal Industry News

ATI Idling A&T Stainless JV

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A&T Stainless will idle its Direct Roll and Pickle operations in Midland, Pa., by the end of June. The company cited the inability to get relief from Section 232 tariffs as the cause of the decision.

A&T Stainless is a 50/50 joint venture between Allegheny Technologies Inc., and China’s Tsingshan Group.

A&T Stainless imports semi-finished stainless slab products from Indonesia to produce 60-inch wide stainless sheet products. The product is subject to the 25 percent tariff levied on all stainless steel products imported into the U.S. under Section 232.

Since the tariffs went into effect, A&T has paid $37 million in tariffs and ATI has incurred $19.3 million in losses from its share in the company, ATI company executives say.

“The unfortunate impact on these hard-working employees is an unintended consequence of the blunt nature of tariffs,” said Robert S. Wetherbee, president and CEO of ATI. “We have no viable alternative to imports, yet have suffered unsustainable losses under this economic policy. Since March 2018, we have sought unsuccessfully to obtain a tariff exclusion, with our latest request still unanswered by the Department of Commerce. While we firmly believe we meet the criteria for an exclusion, we cannot wait any longer. Without a tariff exclusion, we have no choice but to idle the Midland operations.”

Operations will continue in Midland during an orderly idling process through the end of June as A&T Stainless continues to meet the needs of its customers. The DRAP will be idled in a manner that would allow operations to resume if tariff policies were substantially changed, executives say.

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