Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Specialty steelmaker Allegheny Technologies Inc (ATI) plans to shut its standard stainless-steel sheet products division and focus on its aerospace and defense markets. 


During Q4 2020, ATI decided to exit this market due to low margins and instead focus on the recovering demand in the aerospace and defense industries to which it caters through its advanced alloys and solutions (AAS) division, the company said on Dec 3. 


In this transition, the company will shut down five plants, one of which is its flat-rolled products mill in Brackenridge, Pennsylvania where it will layoff 150 employees. The other plants are in Louisville, Ohio; Bridgeview, Illinois; Waterbury, Connecticut, and Pico Rivera, California. In total, about 400 workers will be laid off, media reports indicated. 


The move will be concluded by mid-2021. ATI expects an impairment of about $1bn while simultaneously investing $65-85mn in the AAS segment of its business over the next three years. 

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