ATI’s corporate headquarters announced this week the pending sale of its titanium investment castings businesses, ATI Cast Products at 150 Queen Ave. SW in Albany.
Consolidated Precision Products Corp. of Cleveland has agreed to buy the facility, ATI spokeswoman Natalie Gillespie said, and is expected to keep the plant open.
The facility employs about 600 people, said ATI spokeswoman Natalie Gillespie.
“We expect the deal to close sometime in the third quarter,” Gillespie said. The sale, which is subject to customary regulatory approvals, could be final sometime between July and September, she added.
Terms of the sale were not available.
About a year ago, Selmet, another Albany-area metals firm, announced that it had been sold to Consolidated Precision Products. Selmet CEO and President Rick Kenyon said at the time that not much would change for his 870 workers.
ATI Cast Products produces titanium investment castings that are mainly used by aerospace and defense manufacturers in the production of commercial jet airframes and engines, according to an ATI news release.
About 900 workers will remain in the Albany area working for ATI, a Pittsburgh-based company. Those employees are at ATI Specialty Alloys and Components (Wah Chang) in Millersburg and at ATI Albany Operations at 530 34th Ave. SW in Albany.
A post-casting machining facility in Salem, which employs about 100 people, also will remain with ATI, and provide services to Consolidated Precision Products Corp. and others, Gillespie said.
Consolidated Precision Products Corp., founded in 1991, operates 19 global facilities manufacturing products primarily for the aerospace, defense and industrial industries, according to the company’s website. It is a portfolio company of Warburg Pincus, a global private equity firm.
The gross cash proceeds from the sale will be used by ATI to improve the company’s balance sheet by reducing corporate debt levels and funding its pension obligations, as well as building its strategic cash reserves, according to the ATI news release.
ATI’s third-quarter results for 2019 will likely include a modest gain from the transaction.
“We continue to actively evaluate our business portfolio to ensure that we are focused on the businesses that offer ATI the best combination of growth, profitability and corporate synergies,” said Robert S. Wetherbee, ATI president and CEO, in the news release.