ATI expands portfolio to produce Titanium Alloy Sheet for aerospace
- Secured multi-year agreement with Airbus for titanium products
- Over two-thirds of facility capacity already committed under long-term aerospace agreements
- Industry-leading capability to produce wider and longer titanium sheets than competitors
- Environmentally sustainable facility design with zero air emissions
- Vertical integration of operations enhancing manufacturing efficiency
- Significant capital expenditure required for new facility
- Heavy dependence on aerospace sector performance
- Subject to raw material price and availability volatility
Insights
ATI's new titanium sheet facility strengthens aerospace materials leadership with secured long-term customer agreements and enhanced production capabilities.
ATI has strategically expanded its titanium portfolio with a cutting-edge facility in Pageland, South Carolina that produces titanium alloy sheet for aerospace applications. This development represents a significant competitive advantage in the aerospace materials market. The company can now produce titanium sheets wider and longer than any competitor in the industry, with sheets as thin as 0.020 inches at lengths up to 25 feet.
The timing is excellent as ATI has secured a multi-year agreement with Airbus for titanium components including the new sheet product. More importantly, ATI projects that over two-thirds of the facility's capacity is already committed under long-term agreements with various aerospace customers, providing revenue visibility and stability.
The 125,000 square foot greenfield facility offers vertical integration by combining leveling, annealing, finishing, and inspection processes under one roof. This integration creates operational efficiencies while the high automation level suggests improved margins through reduced labor costs. The sustainability features—electric furnaces and efficient water systems resulting in zero air emissions—align with aerospace industry ESG requirements, potentially attracting environmentally conscious customers.
The facility's production capabilities address a technically challenging manufacturing process for 'pack rolled sheet' that meets exacting aerospace specifications. By leveraging existing capabilities from melt to rolling, ATI has created a high-barrier-to-entry product that strengthens its aerospace materials leadership position while providing customers with enhanced manufacturing flexibility.
State-of-the-art facility produces critical product for aerostructures
"Recognizing the high quality of our products, customers have been asking ATI to add this offering to our titanium portfolio," said Kimberly A. Fields, ATI President and CEO. "With our
Known in the industry as 'pack rolled sheet,' this product must meet exacting industry requirements. Production starts with the best of ATI's extraordinary capabilities across the enterprise, from melt to rolling. Layers of titanium plate are hot rolled to ultra-thin sheets in gauges as thin as 0.020 inches, at lengths up to 25 feet, with the highest surface quality. "This new offering further extends ATI's position as an aerospace leader, giving customers extraordinary manufacturing capability and flexibility," said Fields.
ATI recently announced a multi-year agreement with Airbus for titanium plate, sheet and billet for narrow and widebody aircraft. The titanium alloy sheet for this engagement will be produced at the
ATI Pageland Operations is vertically integrated, bringing leveling, annealing, finishing and inspection together under one roof at the nearly 125,000 square foot greenfield facility. The highly automated facility was designed with sustainability at the forefront: The electric furnaces align
ATI: Proven to Perform
ATI (NYSE: ATI) is a producer of high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. We partner with our customers to deliver extraordinary materials that enable their greatest achievements: their products fly higher and faster, burn hotter, dive deeper, stand stronger and last longer. Our proprietary process technologies, unique customer partnerships and commitment to innovation deliver materials and solutions for today and the evermore challenging environments of tomorrow. We are proven to perform anywhere. Learn more at ATImaterials.com.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty materials and changes in international trade duties and other aspects of international trade policy; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages; (h) business and economic disruptions associated with extraordinary events beyond our control, such as war, terrorism, international conflicts, public health issues, such as epidemics or pandemics, natural disasters and climate-related events that may arise in the future and (i) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 29, 2024, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
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