UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Delaware 1-12001 25-1792394
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1000 Six PPG Place, Pittsburgh, Pennsylvania 15222-5479
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (412) 394-2800
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
On June 26, 2006, Allegheny Technologies Incorporated announced that its Board of Directors has approved a greenfield premium-grade titanium sponge facility to be built in Rowley, UT with an annual capacity of 24 million pounds. This $325 million investment is aimed at increasing ATI's capacity to produce titanium alloys for aerospace and defense applications. Premium-grade sponge is essential for many aerospace applications, including rotating quality titanium alloys used for new jet engines and spare parts. ATI expects initial production to begin in the third quarter 2008.
This Phase IV titanium expansion brings ATI's projected total annual titanium sponge capacity to approximately 40 million pounds. ATI previously announced three titanium sponge capacity increases at its Albany, OR facility amounting to 16 million pounds per year.
The Board's approval of the Phase IV expansion is contingent upon the satisfactory completion of appropriate arrangements relating to the acquisition of and use of property, incentives from the State of Utah and the County of Tooele, and the supply of raw materials and utilities.
A copy of the press release is attached as Exhibit 99.1 to this Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press release dated June 26, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALLEGHENY TECHNOLOGIES INCORPORATED
By: /s/ Richard J. Harshman
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Richard J. Harshman
Executive Vice President, Finance and
Chief Financial Officer
Dated: June 26, 2006
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Exhibit 99.1 Press release dated June 26, 2006
Exhibit 99.1
Allegheny Technologies Announces New Premium-Grade Titanium Sponge Facility
PITTSBURGH--(BUSINESS WIRE)--June 26, 2006--Allegheny Technologies
Incorporated (NYSE:ATI) announced today that its Board of Directors
has approved a greenfield premium-grade titanium sponge facility to be
built in Rowley, UT with an annual capacity of 24 million pounds. This
$325 million investment is aimed at increasing ATI's capacity to
produce titanium alloys for aerospace and defense applications.
Premium-grade sponge is essential for many aerospace applications,
including rotating quality titanium alloys used for new jet engines
and spare parts. ATI expects initial production to begin in the third
quarter 2008.
This Phase IV titanium expansion brings ATI's projected total
annual titanium sponge capacity to approximately 40 million pounds.
ATI previously announced three titanium sponge capacity increases at
its Albany, OR facility amounting to 16 million pounds per year.
"ATI's 40 million pounds of annual titanium sponge capacity
provides opportunities for significant revenue and earnings growth and
a stable low-cost supply of this vital raw material. Strategically
securing a cost-competitive source of titanium sponge is critical to
achieving our profitable growth potential. The expected return on this
investment is very attractive," said Patrick Hassey, Chairman,
President and Chief Executive Officer of Allegheny Technologies. "With
this additional titanium sponge raw material supply, we can
confidently meet the growing long-term mill product demand from our
customers. We also plan to continue to purchase titanium units in the
form of sponge and scrap from our long-term suppliers."
The Board's approval of the Phase IV expansion is contingent upon
the satisfactory completion of appropriate arrangements relating to
the acquisition of and use of property, incentives from the State of
Utah and the County of Tooele, and the supply of raw materials and
utilities.
"Looking to the later part of this decade, our customers' forecast
demand for titanium mill products exceeds the titanium industry's
current and announced production capacity," Hassey said. "ATI is
investing to grow profitably and rapidly with this robust demand. ATI
is uniquely positioned to grow in the global titanium market with our
expanding titanium raw material supply and unequalled melt
capabilities. In addition, we have an unparalleled combination of
assets for finishing titanium products."
ATI previously announced a $150 million three-phase titanium
products expansion that is expected to yield 16 million pounds of
titanium sponge capacity and increase ATI's annual titanium melt
capacity by approximately 25 million pounds:
1. Phase I expansion of ATI's titanium production capabilities was
announced on July 15, 2005, and includes: upgrading and
restarting ATI's titanium sponge facility in Albany, OR,
constructing a third Plasma Arc Melt (PAM) cold-hearth furnace in
Bakers, NC, adding four vacuum arc remelt (VAR) furnaces,
expanding high-value plate products capacity by 25%, and
continued upgrading of ATI's cold-rolling assets used in
producing titanium sheet and strip products.
2. Phase II expansion of ATI's titanium production capabilities was announced on March 17, 2006, and includes: additional titanium sponge capacity at ATI's facility in Albany, OR, and an additional VAR furnace at ATI's facility in Bakers, NC.
3. Phase III expansion of ATI's titanium production capabilities was announced on June 22, 2006, and includes: additional titanium sponge capacity and an additional VAR furnace at ATI's facility in Albany, OR. *T ATI expects a total of $250 - $275 million of capital investments in 2006 in a self-funded growth strategy.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control, that may cause our actual results, performance or achievements to materially differ from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty metals; (b) material adverse changes in the markets we serve, including the aerospace and defense, construction and mining, automotive, electrical energy, chemical process industry, oil and gas, and other markets; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management, including those anticipated from strategic investments, whether due to significant increases in energy, raw materials or employee benefits costs, or other factors; (d) volatility of prices and availability of supply of the raw materials that are critical to the manufacture of our products; and (e) the other risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2005, and other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
Building the World's Best Specialty Metals Company™ Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of $3.7 billion during the most recent four quarters ending March 31, 2006. ATI has approximately 9,300 full-time employees world-wide who use innovative technologies to offer growing global markets a wide range of specialty metals solutions. Our major markets are aerospace and defense, chemical process industry/oil and gas, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Our products include titanium and titanium alloys, nickel-based alloys and superalloys, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, grain-oriented silicon electrical steel and tool steels, and forgings and castings. The Allegheny Technologies website is www.alleghenytechnologies.com.
CONTACT: Allegheny Technologies Incorporated Dan L. Greenfield, 412-394-3004
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