Allegheny Technologies Incorporated (NYSE: ATI) announced today that it has signed a long-term sourcing agreement with Rolls-Royce (LSE: RR), for the supply of ATI 718Plus® Alloy. ATI 718Plus alloy is the newest nickel-based superalloy developed by ATI and is being manufactured into a variety of jet engine components.

Rolls-Royce will be the first jet engine manufacturer to use ATI 718Plus alloy for rotating applications, which require premium quality triple melted material. The agreement covers ATI 718Plus alloy disc-quality products sold to Rolls-Royce and its suppliers by ATI Allvac, an operating unit of Allegheny Technologies. This agreement is for the period 2011 through 2024.

"We are pleased to announce another long-term agreement for the supply of our innovative new ATI 718Plus alloy for jet engines," said Rich Harshman, Chairman, President and Chief Executive Officer of Allegheny Technologies. "ATI 718Plus alloy is now being used in a wide variety of static and rotating jet engine applications. ATI 718Plus alloy is a ground-breaking new alloy that improves our customers' productivity, significantly reduces the total cost of producing a part, and can enhance the engine's fuel efficiency.

"ATI 718Plus alloy was first used in commercial jet engines in 2010 and has grown to a significant product offering to the jet engine supply chain. In addition, many jet engine parts are in the process of changing over to ATI 718Plus alloy. We continue to work with OEMs like Rolls-Royce to expand the application of the ATI 718Plus alloy into legacy, next-generation, and future-generation jet engines."