Allegheny Technologies Moves to Permanently Shut Down Two Mills
10/27/2016 - Specialty metals producer Allegheny Technologies Inc. is permanently closing two idled mills in southwestern Pennsylvania, marking its exit from the grain-oriented electrical steel market and a step back from the commodity stainless market.
In announcing its third-quarter earnings, the company said a restart of its commodity stainless melting and sheet finishing facility or of its electrical steel finishing facility just isn't in the cards, given the persistence of the world's excess steelmaking capacity.
"Based on current and forecasted market and competitive conditions, including the expectation of continued significant excess global capacity for commodity stainless steel sheet and GOES products, we have now concluded that these facilities cannot be operated at an acceptable rate of return," the company said in a statement.
Company spokesman Dan Greenfield told the Pittsburgh Tribune-Review newspaper that even though the company had been America's No. 2 electrical steel producer and the country's No. 3 commodity stainless producer, prices and demand didn't increase as the mills were idled.
And that was telling, he said.
“As we idled these two facilities, the market did not miss our presence,” Greenfield said. “It didn't have much of an impact.”
"Based on current and forecasted market and competitive conditions, including the expectation of continued significant excess global capacity for commodity stainless steel sheet and GOES products, we have now concluded that these facilities cannot be operated at an acceptable rate of return," the company said in a statement.
Company spokesman Dan Greenfield told the Pittsburgh Tribune-Review newspaper that even though the company had been America's No. 2 electrical steel producer and the country's No. 3 commodity stainless producer, prices and demand didn't increase as the mills were idled.
And that was telling, he said.
“As we idled these two facilities, the market did not miss our presence,” Greenfield said. “It didn't have much of an impact.”
