ATI Allegheny Ludlum Nears Completion of $1.6 Billion Hot Strip Mill in Pennsylvania

---

Researched by Industrial Info Resources (Sugar Land, Texas)--ATI Allegheny Ludlum Corporation's (Pittsburgh, Pennsylvania) special hot-rolling and processing facility (HRPF) in Brackenridge, Pennsylvania, is expected to be completed by early 2014. It represents a $1.6 billion investment and a commitment of more than six years by ATI. The strip mill is designed to hot roll nickel-based and specialty alloys; titanium alloys; stainless-steel sheet strip and coiled plate; zirconium alloys; and grain-oriented electrical steel. It will have the capacity for 60-inch-wide to 70-inch-wide plate products. The project will replace a 60-plus-year-old hot strip mill at Brackenridge.

Industrial Info has been tracking and reporting on this project since its inception in 2008. The project has seen an increase in costs and overall scope. Projects of this magnitude require a large amount of time, effort, and planning just to complete the final FYI and scope.

"The company is on track to open its Brackenridge hot-rolling and processing facility in the first quarter of next year," said Rich Harshman, the chairman, president and CEO of ATI. "Some funds that were to be spent in 2014 on the facility were spent this year. The overall budget for the project is not increasing.

"Most of the startup costs are related to running two facilities until they can fully switch production to the new mill. There is to be a crossover in mid-2014, possibly in the third quarter, where HRPF is producing more production orders than the old hot strip mill. I expect the old mill to run its course through the end of 2014, with the new facility fully up to speed by 2015."

The startup costs are estimated to range from $15 million to $25 million. The facility is expected to employ 1,000, including both hourly and salary workers.

It was in June 2010 that Siemens VAI Metals Technologies (Siemens Industry Incorporated) received the contract from ATI to design, engineer and supply the new, totally integrated hot-rolling mill on a process-turnkey basis. The hot-strip mill comprises a roughing stand with an integrated heavy edger; a slab shear; a crop shear; a 7-stand, 4-high finishing mill; and two Siroll Power Coilers that are designed to coil highly rigid steels and metallic alloys in thick gauges.

The electric and automation systems include the main and auxiliary motors, drives, basic automation, process automation, a manufacturing execution system (MES), instrumentation and the Siemens VAI Siloc yard-management system. Siemens VAI Metals also supplied the new water-treatment plant. In March 2011, Fives Stein Incorporated (Canonsburg, Pennsylvania) (formerly Stein Heurtey, Incorporated) was brought on board to design, engineer and supply on a turn-key basis the two walking beam furnaces, which were part of the contract received by Siemens VAI Metals Technologies.

View Project Report - 12001946

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.