Mill project could start in spring '11
Allegheny Technologies Inc.'s planned $1.16 billion specialty metals hot rolling and processing plant and melt shop in Brackenridge -- in the works for more than three years -- finally could start this spring, according to a construction industry expert.
Allegheny Technologies has hired two members of the development team for the project, said Jeff Burd, president of Tall Timber Group in Ross, which publishes BreakingGround magazine, which tracks the Western Pennsylvania construction industry.
Siemens VAI Metals Technologies had previously been announced by ATI as designing the mill equipment. Dan Greenfield, spokesman for ATI, would not confirm other members of the team.
Burd said he understands Walbridge East LLC of Pittsburgh will act as construction manager. Spokesmen for Walbridge and Siemens could not be reached. Hatch Ltd. of Mississauga, Ontario, had been the engineer on the project but is not currently involved, a spokesman said.
Greenfield confirmed that construction will begin in 2011, but he would not confirm it would begin in the spring.
"Land has been cleared and site preparation work has started on the site," he said.
CEO L. Patrick Hassey told analysts in New York on Thursday that the bulk of Allegheny Technologies' capital expenditures in 2011 will focus on construction of the Brackenridge project, which the company is financing internally.
In June, Allegheny Technologies, a Downtown-based specialty metals company, and its Allegheny Ludlum unit announced the selection of Siemens.
ATI did not reveal how much it will pay Siemens, which is based in Vienna. The selection was made after an extensive multiyear study, Greenfield said.
The fully automated mill will give ATI the capability of rolling and processing hot metal bands as wide as 78 inches, compared to its existing mill, which can process metal no wider than 48 inches.
The hot rolling mill and processing plant will reduce the company's cost to produce flat-rolled products and expand its position in key markets, Hassey has said.
Hassey told analysts Thursday that the company will continue to consider potential acquisitions, even as it completes a $778 million deal to acquire Ladish Co. Inc., a Wisconsin-based maker of technologically advanced forged and cast metal components.
That previously announced acquisition is expected to be completed early next year.
Hassey said he anticipates 2011 will be better than this year, and 2012 and 2013 will improve on each preceding year. It's important for Allegheny Technologies to remain diversified, so it is not overly reliant on any one sector, the CEO added.
Those markets include chemical processing, oil, natural gas and electrical energy industries, along with aerospace and defense.
The company has about 2,700 employees in Western Pennsylvania. Besides Brackenridge, ATI's Allegheny Ludlum unit operates plants in Bagdad, Houston, Latrobe, Midland, Vandergrift and Washington, along with its research center in Harrison.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.