ATI and NLMK Extend Carbon Steel Hot Rolling Conversion Agreement

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PITTSBURGH – (COMMERCIAL THREAD) – Allegheny Technologies Incorporated (NYSE: ATI) today announced that it has signed another one-year agreement to expand and expand carbon steel hot-rolled conversion services for NLMK USA at its rolling facility World Class Hot and Processor, or HRPF, located in Brackenridge, PA. Continuing this relationship is an important part of ATI’s drive to achieve improved and sustainable profitability in its flat-rolled products segment.

“This contract extension brings us one step closer to our long-standing goal of increasing the capacity utilization of HRPF in a capital efficient manner, â€said Robert S. Wetherbee, President and CEO. “It provides a constant source of operating cash flow to help fuel ATI’s longer-term balance sheet improvement initiatives.

ATI expects the 2020 volumes covered by this agreement to increase significantly from 2019 levels. This agreement includes significant guaranteed volumes and fixed revenues per tonne. It provides NLMK USA with continued access to HRPF’s capabilities for the conversion of its wide range of grades of carbon steel through December 2020.

“We are happy to extend our relationship with NLMK USA. They really appreciate and validate the value proposition provided by our HRPF and the substantial benefits it brings to their end customers, â€said Kim Fields, ATI Executive Vice President, Flat Rolled Products. “We look forward to continuing to grow this relationship over time. ”

ATI’s HRPF is one of the most powerful hot rolling mills in the world, enabling the production of materials that maintain high strengths at high temperatures. HRPF enables unprecedented control and customization of sheet and plate microstructures and other physical attributes to meet specific performance requirements, shorter cycle times, in larger sizes, with incredible efficiency .

Creating value through relentless innovation â„¢

ATI is a global manufacturer of technically advanced specialty materials and complex components. ATI’s revenue was $ 4.1 billion for the twelve month period ended September 30, 2019. Our most important markets are aerospace and defense, particularly jet engines . We also have a strong presence in the oil and gas, electric power, medical, automotive and other industrial markets. ATI is a market leader in the manufacture of special alloys and differentiated forgings that require our unique precision manufacturing and machining capabilities and our innovative competence in new product development. We are a leader in the production of powders for use in next-generation jet engine forgings and 3D printed aerospace products. See more on our website ATImetals.com.

NLMK USA is one of the leading steel companies in the United States. With production sites in NLMK Indiana, NLMK Pennsylvania and Sharon Coating (the galvanizing operations of NLMK Pennsylvania), NLMK USA produces flat rolled steel which is essential to modern manufacturing. The company supplies high quality steel coils to the construction, automotive, pipe and tubing, and heavy equipment industries in the United States. See more at www.us.nlmk.com.

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