ATI Announces Termination of Joint Venture with Russian-Based VSMPO

Rhea-AI Summary

ATI (NYSE: ATI) has announced the termination of its joint venture, Uniti, LLC, with Russian company VSMPO-AVISMA. This partnership focused on marketing commercially pure titanium products primarily for industrial markets, excluding aerospace, defense, and medical sectors. The winding-up of the joint venture is expected to be completed by the end of 2022. Kevin Kramer, ATI's Chief Commercial & Marketing Officer, expressed gratitude towards the nearly 20-year collaboration with VSMPO-AVISMA.

Positive

• Termination of the joint venture may allow ATI to refocus resources on core markets and partnerships.
• The nearly 20-year collaboration indicates a history of successful partnership in serving industrial markets.

Negative

• Loss of a joint venture may impact revenue streams associated with titanium product sales.
• Potential negative perception due to association with a Russian company amid geopolitical tensions.

PITTSBURGH, March 9, 2022 /PRNewswire/ -- Today, ATI (NYSE: ATI) announced the termination of Uniti, LLC, its joint venture with Russian-based VSMPO-AVISMA (Verkhnaya Salda Metallurgical Production Association - Berezniki Titanium-Magnesium Works) to market and sell a range of commercially pure titanium products. The joint venture primarily focused on selling to industrial markets such as power generation, chemical and petroleum processing, automotive, and transportation. It does not serve the aerospace, defense or medical markets. The joint venture is expected to wind up expeditiously, no later than year-end 2022.

"We appreciate our nearly 20-year collaboration and thank our partners for working with us to serve our shared customers," said Kevin Kramer, board member of the joint venture and Chief Commercial & Marketing Officer of ATI.

ATI: Proven to Perform.

ATI (NYSE: ATI) is a $3 billion global 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. 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. 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. Learn more at ATIMetals.com.  

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SOURCE Allegheny Technologies

FAQ

What did ATI announce on March 9, 2022?

ATI announced the termination of its joint venture, Uniti, LLC, with Russian-based VSMPO-AVISMA.

What markets did the Uniti joint venture serve?

The joint venture primarily served industrial markets such as power generation, chemical processing, automotive, and transportation.

When is the Uniti joint venture expected to wind up?

The winding up of the Uniti joint venture is expected to be completed by year-end 2022.

How long did the partnership between ATI and VSMPO-AVISMA last?

The partnership lasted nearly 20 years.