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IBC Advanced Alloys Corp. will focus on its profitable Copper Alloys division in Franklin, Ind., and cease production this summer at its Massachusetts beryllium-aluminum alloy plant because of insufficient long-term demand for cast beryllium-aluminum alloy products.

The Copper Alloys division operates a vertically integrated copper alloy production facility in Indiana, which takes raw material through foundry, forge and rough and final machining.  Since navigating the market disruptions of the COVID pandemic, consolidating three copper alloy plants into one facility in 2022, and completing construction of its modernized and expanded production facility in Franklin, Ind. in 2022, the division has significantly grown revenue, generated more robust cash flow, improved its gross profit margins and operated profitably.

The company's decision to close its Engineered Materials division was driven primarily by insufficient long-term demand for cast beryllium-aluminum alloy products and the resulting continuing losses.  EMC's net losses, which included a loss of $7.4 million in the 12 months ended June 30, 2023, and a loss of $5.2 million in the trailing 12 months ended Dec. 31, depleted available working capital for the Copper Alloys division at a time when demand for copper alloy products was growing.

"The IBC team worked very hard over a dozen years to expand markets for its innovative beryllium-aluminum cast alloy products," said Mark A. Smith, chairman and CEO of IBC, "but sufficient steady, long-term market demand simply did not materialize at a level that allowed for consistently profitable operations.  By focusing on growing our Copper Alloys business at our integrated and highly efficient foundry in Indiana, we see significant opportunity to expand the business to a whole new level and seek consistent profitability."

Prior to halting operations in Massachusetts, IBC intends to complete its existing production contracts for beryllium-aluminum alloy products, including components it manufactures for the F-35 aircraft and other defense systems.  Alternative production of these alloy parts for the F-35 and other defense systems is expected to be available after IBC closes its Massachusetts facility.