ATI Adding Equipment to Increase Productivity

Allegheny Technologies Inc. announced a project designed to reduce operating costs and increase productivity at the Allegheny Ludlum melt shop in Brackenridge, Pa.

The company plans to install two new high-powered electric arc furnaces and related equipment at a cost of about $35 million. Cost savings are estimated to be over $20 million annually upon completion of the project. The new furnaces are planned to result in improved productivity and efficiencies throughout the entire melt shop.

Project highlights include the installation of two new 110-ton electric arc furnaces with the first furnace expected to be operational by next December, and the second furnace expected to be operational in December 2004.

"This project is consistent with our objectives to reduce costs and pursue projects that can provide a high return on capital employed," said Jim Murdy, president and CEO of Allegheny Technologies. "These new furnaces significantly improve the cost position of our largest flat-rolled products melt shop while maintaining the melt shop's unique flexibility to produce one of the industry's broadest ranges of flat-rolled specialty materials products. The construction plan calls for very limited melt shop downtime as existing furnaces are to be used to help maintain a continuous supply to customers."

Murdy added, "Our 2002 capital expenditure plan remains approximately $50 million, as previously announced."

"These two advanced technology furnaces will replace four 50-year old furnaces," said Doug Kittenbrink, executive vice president and COO of Allegheny Technologies and president of Allegheny Ludlum. "Our engineers developed an innovative solution to carry out this project at a very reasonable cost with minimal melt shop downtime, continuing our long-standing tradition of making sound, cost effective capital investments. When this project is completed, Allegheny Ludlum's flagship melt shop is expected to be fully competitive. This investment is a clear indication that Allegheny Ludlum intends to remain the stainless steel industry's leader for customer service, product quality and delivery performance well into the future."