Allegheny Technologies Incorporated (ATI) has signed two new long-term pricing agreements (LTPA) with General Dynamics Land Systems. ATI will be the preferred supplier of titanium plate for the Abrams tank (in the United States) and the AJAX specialist vehicle (in the United Kingdom) which are both manufactured by General Dynamics Land Systems.
We are pleased to enter into these agreements with General Dynamics Land Systems, marking the beginning of a new relationship with this strategic global customer, said Rich Harshman, ATIs chairman, president and chief executive officer.
ATI is forging a strong technology connection with General Dynamics and together we are developing specialty materials and components for improved protection and lightweighting of next-generation military vehicles. We believe these LTPA recognize our leading technologies, broad manufacturing capabilities, and operational reliability, added Harshman.
Revenue from these LTPA will total approximately $75 million combined over the contract periods. This marks a significant increase in the flat-rolled products segments strategic aerospace and defense market sales, which are an integral part of our ongoing portfolio transformation toward more high-value products, said Bob Wetherbee, executive vice-president, flat-rolled products group.
Production of the titanium products for General Dynamics will begin at ATIs melt facility in Richland, Washington, USA and will be completed at ATIs specialty plate facility in Washington, Pennsylvania.