In an announcement Thursday, ATI said the 50-50 joint venture with China’s Tsingshan Group will import slab from Tsingshan’s new integrated mill in Indonesia and convert it into sheet at ATI’s Hot Rolling and Processing Facility in Pennsylvania. Coils will then be finished on ATI’s Direct Roll Anneal and Pickle (DRAP) line, also in Pennsylvania. 

ATI will re-roll the slabs under a conversion agreement with the joint venture, called Allegheny & Tsingshan Stainless, but the DRAP line, which was idled early in 2016, is being turned over to the joint venture. ATI said the line is its predominant contribution to the joint venture. 

The first shipments are expected in early 2018.

"As we have stated over the last two years, our strategy is to first return our flat-rolled products business to profitability, and then position our flat-rolled segment for sustainable profitability regardless of raw materials costs or trade policy," said ATI chairman and chief executive Rich Harshman. 

"We believe this innovative joint venture combined with the strategic actions and cost reduction initiatives taken over the last several years lays the foundation to achieve this objective."

You can read ATI’s full announcement here.