Exhibit 99.1
Allegheny Technologies Announces Major Expansion of its Titanium Capabilities
PITTSBURGH--(BUSINESS WIRE)--July 15, 2005--Allegheny Technologies
Incorporated (NYSE:ATI) announced today a major expansion of its titanium
production capabilities. These investments are aimed at significantly increasing
ATI's capacity to produce titanium and titanium alloys used for aero-engine
rotating parts, airframe applications and in other robust global markets. These
capital investments of approximately $100 million over the next 18 months will
be funded from internal cash flow.
Major strategic capital projects include:
-- Upgrading and restarting ATI's idled titanium sponge facility. ATI
expects an annual production rate of 7.5 million pounds of titanium
sponge from this facility beginning in the first half of 2006.
Titanium sponge is a critical raw material used to produce titanium
mill products.
-- Constructing a third plasma arc melt cold-hearth furnace. ATI expects
this new furnace to be qualified for production by late 2006. Plasma
arc melting is a superior cold-hearth melt process for making alloyed
titanium products for aero-engine rotating parts and biomedical
applications.
-- Expanding high-value plate products capacity by 25%. ATI expects this
expansion to enable it to continue to grow in its high-value specialty
plate products business, including titanium plate used in airframe,
armor, power generation, and corrosion applications.
-- Continued upgrading of ATI's cold-rolling assets used in producing
titanium sheet and strip products.
Also included in this titanium capability expansion is an approximate 25%
increase across ATI's titanium production system, including increases in vacuum
arc remelt capacity, electron beam cold hearth melting capacity, and forging
reheat capacity.
"We expect over $200 million of annual revenue growth with attractive
after-tax returns from these capital projects when they are fully implemented in
2007. As a result of investments ATI has made during the past several years, we
currently have unparalleled finishing assets for titanium straight length and
flat-rolled products. The new capital investments announced today add much
needed titanium raw material, melt, and remelt capacity to help optimize market
opportunities for ATI," said Pat Hassey, Chairman, President and Chief Executive
Officer of Allegheny Technologies. "These strategic investments confirm ATI's
commitment to profitably grow our high performance metals business.
"The excellent combination of high strength to weight ratio, corrosion
resistance, and biocompatibility make titanium an ideal specialty metal for many
sophisticated and challenging twenty-first century applications. Titanium demand
from the aerospace market, for both aero-engine and airframe applications, is
expected to continue to be robust for the next several years. ATI is a leading
producer of premium titanium alloys used in aero-engine rotating parts used for
both original equipment and spare part applications. Airframe and airframe
components offer significant growth potential for ATI. The industry trend
towards the use of composite materials in airframes increases the need for our
titanium alloys.
"Biomedical is another buoyant market for titanium products used for
medical prosthesis such as hips and knees. ATI is a leading producer in this
market segment and works closely with end users to develop new materials for
longer lasting implants with improved biocompatibility. Armor for the government
defense market is an emerging new application for titanium. In addition, demand
for titanium for corrosion applications, particularly from the chemical
processing and oil and gas markets, is expected to continue to be strong.
Forecasted demand for titanium products is growing and exceeds current global
capabilities."
Allegheny Technologies is a leading producer of titanium and titanium
products. ATI manufactures titanium straight length products (long products),
including ingot, billet, bar, and rod; titanium flat-rolled products, including
sheet, strip, and plate; and specialty titanium products, including shapes,
seamless tubing, castings, and wire. ATI is a technology leader in manufacturing
and research and development for titanium products. ATI is the world's only
titanium producer that employs both plasma cold-hearth and electron beam cold
hearth melt technologies. ATI holds many patents for titanium products used for
aerospace and biomedical applications.
This news release contains forward-looking statements. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may differ materially from those
projected in the forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from those
projected in the forward-looking statements is contained in Allegheny
Technologies' filings with the Securities and Exchange Commission.
Allegheny Technologies Incorporated is one of the largest and most
diversified specialty materials producers in the world, with revenues of
approximately $2.7 billion during 2004. The Company has approximately 9,000
full-time employees world-wide who use innovative technologies and advanced
research and development to offer growing global markets a wide range of
specialty materials solutions. High-value products include nickel-based and
cobalt-based alloys and superalloys, titanium and titanium alloys, specialty
steels, super stainless steel, exotic alloys, which include zirconium, hafnium
and niobium, tungsten materials, and highly engineered strip and Precision
Rolled Strip(R) products. In addition, we produce specialty/commodity materials
such as stainless steel sheet and plate, silicon and tool steels, and forgings
and castings. The Allegheny Technologies website can be found at
www.alleghenytechnologies.com.
CONTACT: Allegheny Technologies Incorporated
Dan L. Greenfield, 412-394-3004