In a move to boost its capabilities to make specialty materials
parts and components,
) has bought precision machining company - Hanard Machine, Inc. -
for an undisclosed price.
Salem, OR-based Hanard performs precision machining on parts and
components that are produced from titanium alloys, nickel-based
alloys and superalloys, aluminum, specialty steel and other ferrous
and non-ferrous metals. Its key markets are aerospace and defense,
and oil and gas/chemical process industry.
Following the takeover, Hanard will be a part of Allegheny's
titanium investment casting business based in Albany, OR, and will
operate as ATI Cast Products, Salem Operations.
The buyout strengthens Allegheny's aerospace supply chain role
and better places it to attain its target to at least double the
revenues of ATI Cast Products within the next 5 years.
With this takeover, the company is now integrated in the
manufacture of titanium investment castings from titanium sponge to
precision machined finished parts. Allegheny sees significant
growth potential for its integrated titanium investment castings
Allegheny's shares were up as much as 3.4% in the trading
session last Friday. The stock eventually closed at $41.58 on that
day, gaining 2.9%.
Allegheny, which is among the prominent players in the U.S.
specialty steel industry along with
), is seeing healthy demand from aerospace OEMs, driven by
production ramp ups. It should gain from its diversified global
growth markets and differentiated product mix.
Allegheny expects business conditions to gradually improve
through 2014. The company sees sustainable improvement and demand
growth from most of its end markets. Allegheny expects
continued increase in aerospace build rates.
Allegheny aims on maximizing value creation from investments in
new products, strategic capital projects and strategic acquisitions
over the next 3 to 5 years. The company is negotiating a number of
new long-term agreements and extending its existing agreements with
strategic customers that are expected to continue to enhance its
competitive market position.
Allegheny currently retains a Zacks Rank #3 (Hold).
Another specialty steel company
CITIC Pacific Ltd.
) holds a Zacks Rank #2 (Buy).
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