ATI Closing Indiana Ferrous Foundry

ATI Closing Indiana Ferrous Foundry

No commercially acceptable buyer for plant producing large-dimension gray and ductile iron castings $18.1 million Q1 loss Castings from 500 to 200,000 lb. Two nonferrous foundries remain

Specialty metal manufacturer Allegheny Technologies Inc. is closing a gray and ductile iron foundry in LaPorte, IN, which will eliminate about 120 positions there. The manufacturer announced five months ago that it was seeking a buyer for the plant, but indicated in its recent quarterly report that effort had been unsuccessful.

In summary, ATI’s Q1 2014 statement reported sales of $987.3 million and a loss of $18.1 million. For the first quarter 2013, net income from continuing operations attributable to ATI was $9.7 million on sales of $1.099 billion.

The foundry, ATI Casting Service in Laporte, IN, produces gray and ductile iron castings from 500 to 200,000 lb., for manufacturers of wind turbines, industrial gas turbines, railroad diesel engines, and machine tools.

Last fall, the decision to seek a buyer followed news of a restructuring for ATI’s Engineered Products division. “After an extensive process, we concluded that we could not complete a sale transaction on commercially acceptable terms,” according to the announcement. “We expect to record approximately $2 million in closure costs, primarily severance, in the second quarter 2014 as a result of this decision.”

Also since last fall, ATI has eliminated the Engineered Products division and reorganized its operations into two segments, ATI High Performance Materials and Components and ATI Flat Rolled Products. While the ferrous foundry will close, ATI continues to maintain two metalcasting operations: ATI Specialty Alloys and Components (previously ATI Wah Chang), which produces reactive and refractory cast parts, mainly for aerospace structures; and ATI Cast Products (previously ATI Pacific Cast Technologies), which produces titanium investment castings. Both are located in in Albany, OR.

“As we began 2014, we were cautiously optimistic that business conditions would gradually improve as we move through the year,” stated ATI chairman, president, and CEO Rich Harshman. “Our first-quarter results and our near-term outlook are consistent with that view. While the first quarter was challenging, business conditions improved as the quarter progressed. As we enter the second quarter, we are seeing meaningful signs of continued improvement.”

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