Allegheny Technologies announces new long-term agreement

Allegheny Technologies Incorporated (NYSE: ATI) announced that it has signed a ten-year sourcing agreement with Rolls-Royce plc for the supply of nickel-based superalloy disc-quality products for commercial jet engine applications. The agreement covers products sold by ATI Allvac, an ATI operating company, to the customer's first tier suppliers (forgers). Potential revenue is estimated to be between $750 million and $1 billion.

"We are pleased to be developing a long-term strategic relationship with this important customer to supply the critical metallics needed for aeroengine disc-quality products," said L. Patrick Hassey, Chairman, President and Chief Executive Officer of Allegheny Technologies. "ATI has consistently invested in unsurpassed manufacturing capabilities to position ATI as the premier specialty metals company. In addition, ATI brings new products with unsurpassed quality and support systems to continue to benefit the customer and its supply chain. Our new titanium and superalloy forging facility located in Bakers, NC is being completed in 2009. This facility should enable ATI to achieve ever higher standards to meet the demanding fuel efficiency requirements of the jet engine market."