ATI Focus -- 2011 (Spring, Summer)

Double Issue
in this
issue
Spring
summer
6
Beyond The Numbers
Pat Hassey Leaves
A Legacy Of Heart
12
2011
Titanium:
Helping Quench the
Desert’s Thirst
DOuBLe issue
spring
summer
2011
In this issue:
ATI Updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Journey Continues…
Message from Rich Harshman,
ATI’s Chairman, President and CEO . . . . . . . . . . . . . . 5
Beyond the Numbers: Pat Hassey
Leaves a Legacy of Heart. . . . . . . . . . . . . . . . . . . . . . . 6
“The Right Thing, Above All Else”
Jon Walton retires after 25 years . . . . . . . . . . . . . . . . 9
in this
issue
6
Beyond the numbers
pat hassey Leaves
A Legacy Of heart
12
Focus on Employees: Lockport Facility . . . . . . . . . . 10
titanium:
helping Quench the
Desert’s thirst
About the Cover:
On March 11, the unthinkable happened. Japan was hit by one of
the largest earthquakes in history, followed by devastating tsunamis
that destroyed much of the countryside and claimed many lives.
Thankfully, everyone at our Tokyo office and their families were
unharmed and are safe. ATI Asia General Sales Manager Koji Tanaka
(see page 15) said to ATI focus, “We wish to express our sentiments
of deepest sorrow and solidarity to the victims of Tohoku Kanto
Earthquake. Our prayers and thoughts are with everyone who has
been suffering from the catastrophe. We pray from our hearts that
everybody will peacefully overcome this hardship and return to
normality. We Japanese, deeply thank the world’s prayers for Japan.
We never give up and will stand up again. From left to right: Reiko
Fujinuma – Inside Sales, Koji Tanaka, Mike Robbins – ATI Asia Vice
President, Daishi Kawasaki – Accountant, Itsuko Abe – Controller,
Nozomi Takada – Inside Sales, Chieko Muramatsu – Inside Sales,
and Katsuhiko Morooka - Sales Manager
ATI Tungsten Materials Transforms
Specialty Metals into Key Components . . . . . . . . . . 13
Star Performers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Message from ATI Corporate Ethics Office . . . . . . . 16
Editor’s Note
The 2011 Spring/Summer issue of ATI focus revolves around an
assortment of recent historic events in our Company.
On April 29, Rich Harshman was announced as the new Chairman,
President, and CEO of ATI (see page 5).
This issue also honors our recently retired CEO Pat Hassey (see page 6)
and Chief Legal and Compliance Officer Jon Walton (see page 9).
We wish them both a happy retirement and thank them for all their
years of service and dedication with our company.
ATI also welcomed a new addition to the family with the recent
addition of ATI Ladish and its operating units (see page 2).
ATI focus will continue to be available on our website at
www.ATImetals.com/ATIfocus.
Titanium: Helping Quench the
Desert’s Thirst. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
We welcome your thoughts, comments, and feedback to the
improvement of our publication. Please go to www.ATIfocus.com
to provide feedback and participate to win prizes (see back cover
for details).
To make contributions or suggest an article, please contact any
member of the ATI focus Editorial Board (see contact information
on page 17).
Matt Shaffer
Editor
SPRING / SUMMER 2011 1
ATIUPDATES
ATILadishJoinstheFamily
On May 9, ATI announced ATI Ladish as a new ATI operating company
in our High Performance Metals segment, which also includes ATI Allvac
and ATI Wah Chang. ATI CEO Rich Harshman said, “We are pleased
to have completed our acquisition of Ladish and welcome the highly
experienced group of Ladish employees to ATI.” ATI Ladish President
Gary Vroman said, “The Ladish team is excited to join ATI. We believe this
combination of complementary operations creates opportunities for us to
contribute to ATI’s growth while continuing to be an important part of the
communities in which we operate.”
CarnegieScienceCenterChairmanAward
In May, ATI received the Carnegie Science Center’s Chairman Award.
The 2011 Carnegie Science Awards are designed to recognize science
and technology achievements in Western Pennsylvania. The Chairman’s
Award also recognizes contributions related to the development of new
technology and the creation of jobs within the science and technology
fields. ATI Chairman, President and CEO Rich Harshman receives the
Chairman’s Award on behalf of ATI – the award was presented by
President of the Americas for Eaton Corporation Electrical Sector,
Jerry Whitaker (right), during the award ceremony.
TalkingWaterGardensProjectWinsTop
AwardforExcellenceinEngineering
The Talking Water Gardens, a 37-acre engineered wetlands park being built
for the final treatment and cooling of wastewater from the cities of Albany
and Millersburg and from ATI Wah Chang, has been awarded the American
Academy of Environmental Engineers’ Superior Achievement award for
Excellence in Environmental Engineering. The Talking Water Gardens is
the first public/private engineering project of its kind in the United States
and will provide an attractive, environmentally responsible public-use site
for recreation and learning. Construction of this unique project in Albany,
Oregon, began in 2010 and will be complete in the spring of 2012. Visitors
to the park will be able to enjoy nearly 3 miles of walking trails and view the
waterfalls, wildflowers, scrub and marsh plants which are used to clean and
cool the water. The award was presented to the engineering consulting firm,
CH2M Hill, in Washington D.C. in May. Seeds and other vegetation planted
on the banks and in the wetlands begin to grow – March 2011.
2
SPRING / SUMMER 2011
L.PatrickHasseyHotRolling
&ProcessingFacility
On April 26, the name of the new mill being built in Brackenridge, PA,
officially became the ‘L. Patrick Hassey Hot Rolling & Processing Facility,’
named after our recently retired Chairman & CEO. When completed, the
mill will provide unsurpassed manufacturing capability and unique versatility
in the production of our broad range of Mission Critical Metallics . It is
®
designed to be the most powerful such mill in our industry and provide
the capability of producing nearly all of the alloys we currently make and
advanced new alloys and sizes that will add to our portfolio. Pat Hassey
addresses the crowd at the inauguration after the curtains were opened,
unveiling the new sign for the facility.
ATIReceivesADPAward
HR and Payroll employees from ATI corporate offices, ATI Tungsten
Materials, ATI Precision Finishing and ATI Allvac accepted an award
from ADP’s President and CEO in March. The award recognized ATI for
long-term commitment and integration of ADP products/services with
ATI initiatives that gain process efficiencies and cost savings. From left
to right: Carlos Rodriguez (ADP President), Brenda Hyatt, Stefanie Nairn,
Ruthie Pugh, Charlene Gaston, Bob Steen, Judy Snell, Mickie Mariello,
Marie Smith, Connie Belknap and Gary Butler (ADP CEO.)
ATIDefenseSponsorsEventatEBA&D
In March, ATI Defense sponsored a full day event at Ensign-Bickford
Aerospace & Defense (EBA&D) to introduce ATI’s broad range of products
and services to a group of 20 engineers and procurement staff at EBA&D’s
headquarters in Simsbury, CT. The event included an overview of both
companies’ capabilities, followed by discussions regarding possible
collaborations between ATI and EBA&D. The event strengthened ATI’s
relationship with EBA&D. From left to right: Brad Hasek – ATI Defense
Applications Engineer, Scott Crespi – EBA&D Project Engineer, Mark
Sotosky – ATI Defense Business Development Manager, Andrew Nichols –
ATI Defense Director, and Ben Tursi – ATI Allegheny Ludlum Area
Sales Manager.
continued >>>
SPRING / SUMMER 2011
3
ATIUPDATES ...CONTINUED
ATIOil&GasGoes‘DownUnder’
ATI Oil & Gas continues to grow its global brand by exhibiting for the first
time in February at the AOG Australasia conference. AOG Australasia
is one of Australia’s largest oil & gas shows and brings together the
industry’s leading companies and people. At the exhibition, ATI Oil & Gas
representatives continued to forge new relationships in the oil and gas
industry in Australia. Renate Whitehead (left) & Trent MacKenzie discuss
ATI’s products and services with some visitors at the ATI Oil & Gas stand.
LynnDavisRetiresAfter30+Yearsof
ServicetoATI
In February, Lynn Davis retired after more than 30 years of service to ATI.
During his career Lynn held numerous positions of increasing responsibility.
Lynn joined ATI Wah Chang in 1997 as a process engineer and advanced
to hold various operations, maintenance, engineering, quality, research,
technical, and executive leadership positions. In September 2000, he was
named Business Unit President of ATI Wah Chang and was promoted to
Group President, ATI Primary Metals and Exotic Alloys, in October 2008.
Prior to his retirement, Lynn served as Group President, ATI Primary
Operations, and was a member of the ATI Management’s Executive
Committee. Lynn continues to provide technical and other services to
ATI under a consulting agreement. We would like to thank Lynn for his
years of service and dedication with our company.
ATIPortlandForgeSelectedas
IndustryoftheYear
In January, ATI Portland Forge was selected by the Indiana Jay County
Chamber of Commerce as Industry of the Year. Each year a company is
honored by the Chamber for its impact on the local community through
community support, employee involvement in civic activities, and overall
positive impact. ATI Portland Forge President Pat Bennett said, “I was
honored to accept the award on behalf of the ATI Portland Forge
employees – both current and those who built the company over its
100 plus years of operation.”
4
SPRING / SUMMER 2011
The Journey Continues…
Message from Rich Harshman,
ATI’s Chairman, President and CEO
Rich takes the reigns as ATI Chairman,
President and CEO at the Annual
Shareholders meeting on April 29.
Since October 2003, I had the
opportunity to work side-by-side with
Pat Hassey in developing and implementing
our strategic vision of transforming ATI into
a leading global producer of specialty metals.
It has been quite a journey so far. But the
journey has not ended, it continues. Now,
in my role as ATI’s Chairman, President and
CEO, it is my job to continue leading ATI to
our goal of being a truly great company.
To achieve this goal, we will continue
to be focused on differentiating ATI from
our competitors by creating greater value
for our customers. We must remember
that INTEGRITY is the cornerstone of our
business. Excellence throughout our global
business is built upon the foundation of the
highest standards of ethical performance.
We will remain focused on growing global
markets. We must continue to recognize
that as a U.S.-based manufacturer we
need unsurpassed manufacturing
capabilities. We need to continue our
efforts to develop a deep understanding
of our customers’ needs and to use that
understanding to develop innovative new
alloys and produce products that create
value for our customers.
We will continue our focus on the
objectives of the ATI Business System
(ATIBS), including improving safety,
reducing costs, improving quality and
customer responsiveness, shortening
manufacturing cycle times, reducing
working capital, and improving the
operating effectiveness and efficiency
of our equipment.
This is a great time to be in the specialty
metals business. I have been with ATI my
entire 33-year career. The opportunities
that we have in front of us today are greater
than at any time in my career. We expect
to see unprecedented levels of demand
and strong growth for the kind of products
products, and technologies. In addition to
ATI 425 Alloy, customer interest is strong
for ATI 718Plus alloy, a nickel-based
superalloy for aero engine applications.
We are also making good progress in
developing a significant position as a
premier supplier of aerospace fastener
stock. ATI is uniquely positioned as the
only aerospace fastener stock producer
fully-integrated from melt to finished
product for all three alloy systems: titaniumbased, nickel-based, and specialty alloys.
The acquisition of ATI Powder Metals
in late 2009 and ATI Ladish in May 2011
positions ATI to grow as a key producer
of advanced powder metal alloys and
forgings for several markets including
aero engine, oil & gas, and electrical
energy. In addition, we are developing
new duplex and super duplex alloys
and products for the Oil & Gas/Chemical
Process Industry, new zirconium alloys
for the medical markets, and new armor
alloys for the defense market.
So you see, the journey has not
ended…it continues. I truly believe that
a company never reaches its destination.
As we set goals and achieve them, we
will then set even higher goals. We must
continue to challenge the status quo. We
will continue to seek ways to improve our
competitive position in the markets that
we serve. Why? Because our competitors
are not standing still, they are striving to
improve, to get better.
For ATI to maintain and enhance our
leadership as the most diversified specialty
metals company in the world, we must
continue to grow, to improve, to create
value for our existing customers and find
opportunities with new customers. This
is what separates a truly great company
from a good company.
I look forward to working with each
of you as we continue our journey.
®
®
that we make from several of our key global
markets. In the first quarter of 2011, 70%
of ATI’s total sales were to the Aerospace
& Defense, Oil & Gas/Chemical Process
Industry, Electrical Energy, and Medical
markets. These markets demand the
high-value, high-quality, Mission Critical
Metallics that ATI produces.
On May 9, 2011, we announced the
completion of our acquisition of ATI Ladish.
I would like to welcome all ATI Ladish
employees to the ATI Family. The addition
of ATI Ladish’s highly-engineered forgings,
castings and precision finished products
and capabilities strengthens and enhances
ATI’s opportunities for profitable growth
and our ability to provide greater value to
our customers.
The ATI Market Sector Teams continue
to be focused on identifying and developing
opportunities for ATI’s products and business
units. We recently returned from the world’s
premier aerospace materials conference,
Aeromat, held in Long Beach, CA. This
conference reinforced the unique capabilities
of ATI to provide leading technologically
advanced specialty metals products to the
aerospace industry. A focus of ours at this
year’s conference was the continuing
interest in and application of ATI 425 Alloy.
In June, we will be at the 2011 Paris
Air Show where all of the ATI business units
involved in the aerospace market will be
exhibiting our products and capabilities.
This annual show is attended by many of
our key customers as well as by investors.
We have numerous meetings scheduled
that will continue to showcase our broad
range of products, technologies, and
unsurpassed manufacturing capabilities.
We will also formally introduce ATI Ladish
at this year’s Air Show.
We will continue to place strong
emphasis on developing new alloys,
®
®
SPRING / SUMMER 2011 5
Beyond the numbers
Pat Hassey leaves a legacy of heart
By Brad Fisher, Business Writer
By the numbers, retired Chairman & CEO Pat Hassey has had a
good run. Recruited in 2003, Pat joined a company that was at
the time trying to regain its feet and its identity after a stressful
period of divestiture and reorganization. ATI had been through a
string of 12 losing quarters, had a weak cash position and a recent
history of management turnover. Pat Hassey says, with typical
understatement, “The Company was not doing well. Everyone was
ready for a change.”
Today, eight profitable years later, Pat’s leadership has been
instrumental not just in righting the ship, but in aligning ATI with
strong global growth trends, building brand and market leadership,
and delivering value to ATI employees, customers, and the
communities in which we operate.
To put some of the numbers in perspective, those who
invested in ATI when Pat first became CEO, would have earned
~11x their investment, when including the dividends, and a 37.2%
annual return year over year.
This legacy becomes plain when you ask Pat’s colleagues
about his contribution to ATI. They talk about the numbers at first.
And then they start talking about the kind of contribution that
doesn’t show up on a balance sheet. Some call it trust. Others
call it transparency and openness. What most people want to
say about Pat Hassey is that he has steered ATI with his heart as
much as his sharp mind and his solid business experience, and
that has made a unique difference.
Open minds
Retired Executive VP Jon Walton, who has seen a few CEOs
come and go in his 25-year career at ATI and worked very closely
with Pat, says, “Pat is one of the most transparent people I’ve
ever worked for. He has the talent not just to be open, but to
open up other people’s minds as well. He values the opinions of
others in a way that not many other leaders do. And this is the
way you need to run a business like ours ... because you can’t
always be the smartest guy in the room. No one person can have
all the answers.”
Jon cites the acquisition of J&L Specialty Steel in 2004 as
an early test of the openness and dialog Pat encouraged from his
Executive Committee. “We were discussing whether we should
go ahead with it or not, and some of us questioned the value
of the J&L assets, thought they weren’t worth the asking price
— even though the asking price was pretty low,” says Jon. “Pat
didn’t bat an eye. He just said, ‘can all this really be worth zero?
can you prove that?’ And we took another look, and it turns out
that the assets were fine — they just needed to be utilized in the
right way.”
6
SPRING / SUMMER 2011
Bob Power, Vice President, Global Corporate
Client Group at the New York Stock Exchange,
presents Pat Hassey with a crystal globe, which
symbolizes the global presence of the NYSE.
The book of trust
“When the book is written on Pat Hassey,” says Vice President
of Investor Relations & Corporate Communications Dan Greenfield,
“it’ll be about how he built a truly flat organization of people who
trust each other, respect each other, and meet constantly to find
out how to work together. People who know that the payoff is
based on the success of ATI, not one individual or one division.
He brought us all together. And a big part of it is that style of trust
and familiarity, of genuinely caring about people.”
Actually, the book has been written on Pat, or at least a
chapter, anyway. Business writer Jason Jennings, in his leadership
guide Hit the Ground Running, devotes a chapter to part of Pat’s
career, including his tenure at ATI. And much of what Jennings has
to say about the success of Pat Hassey as a leader is about trust.
One of Hassey’s strong guiding principles is that
until employees believe that their boss cares
about their personal well-being as much as the
well-being of the company, they won’t trust
him or her and won’t be willing to become as
committed and engaged in what the business
is trying to achieve. “You have to treat people
fairly,” Pat says, “with dignity, by listening,
and valuing each person as an individual.
Otherwise it’s impossible to build a team.”
Strategic renewal
The Hassey legacy is about vision, too. “When Pat arrived at
ATI, we had good people, good technology, but strategies weren’t
crisp,” says ATI Chairman, President & CEO Rich Harshman.
“Pat brought what the Company needed: a focus on what we
needed to do to be a global competitor — how to identify market
opportunities and how to make and price our products. He brought
visionary leadership in terms of what the company could be: a
global leader in specialty metals.”
Rich, who succeeds Pat as ATI Chairman & CEO, credits Pat
with helping him prepare to take this vision forward. “Pat’s been a
great mentor. He has a unique ability to explain the right decision.
And he’s a good listener. I’ve never met anyone as patient as him.
Pat is the most genuine, down-to-earth person and he truly cares
about people — a true friend. I think the hardest thing for me will
be to try to replace that.”
This visionary and collaborative approach to strategy is
what has aligned ATI, over the past eight years, with markets
that are propelled by global growth: aerospace & defense, oil &
gas/chemical process industry, electrical energy, and medical.
“In picking the markets,” says Pat, “we looked at events and
circumstances, connecting seemingly unrelated things into a
strategy. It was very clear to me that we had a unique global
position. That’s why, for example, we decided to grow electrical
steel instead of divesting it. And we decided to invest heavily into
titanium because of the new generation of airframes, and the
potential for long-range contracts that came with that.”
Flatter management structure, combined with the formation
of market sector teams, was the key to reaching booming global
markets, according to Pat. “It was the right approach. The idea was
to get together and run after markets that required interdependence.”
And the team-building was based on Pat’s belief in trust and dialog:
“You become friends. You offer everyone a real chance to offer
input, and a stake in the outcome.”
Respect for people, respect for community
From Pat’s own point of view, the transformation of ATI,
in addition to strategy and culture, has also been about values,
with a capital ‘V.’ “As a very first step, we tried to establish a
values system: how we treat people; our philosophy of growth.
I got the rare opportunity to transform a company into the kind of
company I’d like to work for myself...a company with Value-Based
Leadership. In that respect, this is the best job I’ve ever had,
working with the best people I’ve ever worked with.”
You can read the principles of Value-Based Leadership at the
end of the Chairman’s Letter of every ATI annual report since 2004.
The values are integrity, accountability, compliance, excellence and
freedom for people to reach their potential. “It’s taken hold,” says
Pat. “People believe it, because we walk the talk.”
Jon Walton agrees. “Value-Based Leadership is ingrained in
us, just by being around Pat. He demonstrates it by what he says
and by what he does.
continued >>>
From left to right: ATI CEO Rich Harshman, Jon Walton, Pat Hassey,
and Hot Rolling & Processing Facility Project Executive Darin Sarin, at
the L. Patrick Hassey Hot Rolling & Processing Facility Inauguration.
SPRING / SUMMER 2011 7
Beyond the numbers
Pat Hassey leaves a legacy of heart ...continued
Pat Hassey addresses the audience at the Annual Shareholders
meeting on April 29, as Jon Walton and Rich Harshman look on.
Marketing Communications Leader/Brand Manager Phil
Morton, who worked with Pat during his career at Alcoa, says,
“Capitalism doesn’t have a conscience. That’s why companies
need one ... and a heart. Pat is helping ATI create a company that’s
transformational ... that could set the tone for how companies
ought to act in the future.”
Looking forward
One can also see ATI’s values at work in the Company’s
commitment to building up its manufacturing base in the U.S.
In an era where other U.S. companies have offshored production
to cut costs with mixed results, ATI is committed to its home base,
investing more than $2.9 billion to build or acquire the world’s best
manufacturing technology right here at home.
Of course there are strategic, bottom-line reasons for this.
The reasons have to do with competitiveness, customer value,
and national security. But there’s a bigger picture too, as the U.S.
economy has faltered and middle-class manufacturing jobs have
evaporated: ATI believes it has a duty to the communities that have
helped build the company over the years. “We’re responsible for
over 11,000 families. And it’s not just the people who work for us,
it’s also the small businesses who work for us. When big businesses
abandon their commitment to a community, everything else in the
community dies. We need to produce, we need to manufacture,
and we need to have middle class jobs in the U.S.,” says Pat.
“As a private industry, we owe it to the nation.”
8
SPRING / SUMMER 2011
There’s a long list of accomplishments from the Hassey
years, with a lot of forward momentum. It starts with eight years
of respectable numbers, a strong balance sheet, and a funded
pension program. It includes the first U.S. titanium sponge facility
built in over 50 years, expanded titanium and nickel-based alloy
facilities, and a game-changing hot mill, under way and on track,
along with new capabilities and new alloys that are opening up
new applications. And technology that, when it’s in place, should
position the Company with unsurpassed manufacturing capabilities
for decades to come.
As a new generation of leadership prepares for the future, Pat
puts today’s numbers in perspective. “After it’s all said and done,
the only real advantage is time. We are a leader today. But we have
competitors. They’re running hard to catch up. We’ve got to keep
moving. We’ve got to keep getting better.”
And that’s where the legacy of trust, openness, and heart will
come in.
Pat Hassey shows Tim Geithner where ATI’s alloys wind up in the manufacture
of a modern jet during a visit by the U.S. Treasury Secretary to our Washington, PA
operation on March 31, 2010, as the global media covering the event watches.
“The Right Thing, Above All Else”
Executive VP and ‘Chief Moral Compass’ Jon Walton retires after
25 productive and pivotal years.
By Brad Fisher, Business Writer
Jon Walton addresses the crowd
at the STAL 10th Anniversary and
Expansion Ceremony in November
2009 in Shanghai, China.
They say success has many fathers. At
ATI, it also has a grandfather; Executive
VP Jon Walton, retired in May after a
40-year career in the metals industry with
25 pivotal and formative years at ATI,
including stewardship over ATI’s culture
of ethics and compliance. In addition to
one of ATI’s longest tenures, Jon had
what was arguably the company’s longest
title: Executive Vice President, Human
Resources, Chief Legal and Compliance
Officer, General Counsel, and Corporate
Secretary. He has seen six CEOs come
and go, providing each one of them with
sound counsel, tenacious negotiating
skills, and the wisdom that comes from
having been through the fire more than
once. Jon’s work helped bring us STAL,
the Teledyne combination and related
restructuring and spin-offs, the J&L
Specialty Steel acquisition, the Ladish
“Jon takes his responsibilities seriously. He has served as good counsel
to ATI leadership, advising us on the impact of decisions, and the right
way to execute them. Jon’s focus has always been to do the right thing,
above all else.” – Carl Moulton, Senior Vice President, International
“Jon has been a good leader. He understands the business, and helps
develop business objectives ... and he communicates. It’s not a one-way
street. He asks questions, probes, looks for feedback.” – Pat Viccaro,
Assistant General Counsel, Intellectual Property
acquisition, and many other milestones
in ATI’s history. It also helped bring us a
culture of living ethics, where walking the
talk delivers bottom line value for customers
and shareholders. And, for his own staff
in the company’s legal and HR groups,
Jon’s legacy has been one of hard work,
personal growth and development, and
an environment of true accessibility and
caring. One of Jon’s final assignments
was developing the succession plan that,
as he and Pat stepped back, assured a
continuation of the culture of success and
achievement that has brought ATI to the
leadership position it holds today. Below
are some thoughts from colleagues on the
nature of Jon Walton’s legacy.
Even as he retires formally, Jon will
provide a smooth transition as he has agreed
to remain an advisor to the Company and as
a member of the STAL Board of Directors.
With the history he and ATI have had
together, with the personal investment he
has placed in the next generation of ATI
leaders, it’s hard to blame him for wanting
to stay in touch. But with the work he’s
done, it’s also clear that the course he has
set, the values he has helped establish, will
help keep ATI on course for years to come.
“Ethics takes commitment. Without commitment, ethics can be an easy
thing to ignore. Jon’s the guy who made ethics impossible to ignore at
ATI. Jon is a true believer.” – Elliot Davis, Senior Vice President, General
Counsel, Chief Compliance Officer and Corporate Secretary
“Jon has a wealth of institutional knowledge that will be hard to replace, and
tremendous business acumen. He is a warm, people person who cares.
And he likes to laugh and smile... he’s a glass-half-full kind of guy.”
– Mary Beth Moore, Vice President, Human Resources
“I’ve never met anybody who works as hard, or who loves his work as
much as Jon. And I’ve never had a better mentor. If I’m a good attorney,
it’s because of him. If I’m a good negotiator, it’s because of him.”
– John Tishok, Senior Counsel
August 2007, Corporate Counsel
SPRING / SUMMER 2011 9
Focus on Employees:
Lockport Facility
By Matt Shaffer
The ATI Allvac Lockport facility has a long, rich
history in the industrial region of Buffalo, NY,
dating back well over 100 years. In the early
1900s, the facility became a fully integrated
mill providing tool steels, magnetic alloys,
and armor plate for WWI & WWII. Then
in the 1950s, the facility began producing
higher-value products, such as high-nickel
stainless and heat-resistant alloys. In 1984, the
facility joined the ATI family when Allegheny
Ludlum purchased the company and in 1996
became part of Allvac after the combination of
Allegheny Ludlum & Teledyne.
Today, the unsurpassed melting capability
of the Lockport facility produces high-value
nickel-based alloys and superalloys and
specialty steels with its VIM, ESR, and VAR
furnaces. The Lockport employees also take
pride in their work and have demonstrated a
consistent track record of quality, safety, and
on-time delivery.
This issue of ATI focus highlights some of
the many dedicated employees at our Lockport
Operations and their efforts.
Burton Malcolm
VIM & Remelt Senior Supervisor – Provides leadership in Safety, People
Quality, Responsiveness, and Cost throughout the plant.
What is the biggest change you have seen throughout your career at
our Company?
There have been many changes since I started working at this plant in
1961. In the 1960s and 70s, safety was not a major concern. There were no
respirators and the use of PPE was limited. Today, safety is a core value and
a cornerstone in everything we do.
The work itself has changed. When I started here all the jobs required heavy
lifting and extensive manual labor. Today we use technology and automation
to improve the tasks for the employees.
Michael Schaffert
Senior Operating Technician – Operates a vacuum induction melting furnace
and auxiliary equipment.
What is your work philosophy?
Our continuous success is based on teamwork. The Raw Materials
Department, the VIM masons, the maintenance technicians, the management
team, and the VIM crew all work together. This dedicated team gives 100%
to create a world-class operation that produces superb quality alloys for our
customers. We are all very proud of that.
Matthew Mackey
Operating Technician I – Operates overhead crane, setting pit, stripping ingots,
and operating mobile equipment.
What do you believe is most important in satisfying the customer?
I believe that Quality is most important. The ATI Allvac quality policy states: “We
will continuously improve customer satisfaction safely, correctly, quickly and
on time.” Quality is never negotiable, and I believe that if you produce a quality
product safely, and according to procedure, that will satisfy our customers.
Kenneth Bowman
Maintenance Technician – Ensures our melting furnaces are properly
maintained, primarily in the Remelt Department.
What do you enjoy most about your job?
I enjoy the challenges of problem solving and seeking solutions for a smoother
and more efficient operation. This increases the reliability of our equipment.
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SPRING / SUMMER 2011
Katie Wojcik
Chemical Technician – Prepares and analyzes VIM and Raw Material samples,
and assists in laboratory development.
What should people know about you and your job?
I’ve been working at the Lockport Plant for a little over three years, and I really
enjoy my job. The new challenges and experiences keep things exciting and
allow me to grow as a professional. I take great pride in ensuring that only the
highest quality analyses come from the Lockport Lab.
Beth Newton
Sr. Systems and Cost Analyst – Compiles and reports operational metrics,
maintains production applications, installs computers and handles
troubleshooting issues, and analyzes cost data and variances.
What is the most critical aspect of your job?
I convert raw data into actionable information for decision support. This
information supports users at many levels of the organization. I also act as a
liaison between Lockport Plant users and the IT department.
Bill Moebs
Shipping Clerk – Prepares ingots for shipping and receives raw materials
for processing.
What is the most important piece of advice to share with other ATI
employees?
Always give an honest effort in everything you do in life because you would
only be unfair to yourself with anything less. Always keep things in perspective
and maintain a good balance between work and family life.
Michael Henderson
Furnace Operator – Ensures proper set-up, program, start-up and end Remelt
heats and also strips VAR furnaces.
What is your most memorable work experience?
The first time I worked as group leader in the Remelt department, I was
operating seven furnaces when the melt shop lost power. We had to turn on
the emergency cooling water with flashlights to save the furnaces. Eventually,
we learned that the transformer outside was on fire. I spent the rest of the
shift and most of the next day wondering if I did something wrong. I was
relieved to find out that the transformer had been struck by lightning!
SPRING / SUMMER 2011 11
Titanium:
Helping Quench the Desert’s Thirst
By Tim Hayes, Business Writer
Two molecules of hydrogen, one molecule
of oxygen. Liquid water, the source and
sustenance of life on the planet. The earth
is covered in water, yet most of that water
cannot be consumed by people or used to
grow crops because of its salt content.
Seawater treated to remove salt –
a process known as desalination – has
commanded growing importance across
many markets on the world stage, and ATI
has been playing an increasingly critical role.
“Fresh water is as important as oil,
maybe even more so,” said Carl Moulton,
Senior Vice President, International at ATI.
“It holds the key to cultivation of food in
the Middle East, Northern Africa, and other
parts of the world where food production
has traditionally been difficult.”
UNITI LLC, a joint venture between
ATI and Verkhnaya Salda Metallurgical
Production Association (VSMPO), recently
announced its selection to supply titanium
to the world’s largest desalination plant in
Ras Az Zawr, Saudi Arabia.
Between 5.5 million and 6.0 million
pounds of titanium strip – the largest
order in UNITI history – will go to Doosan
Heavy Industries & Construction of Korea.
The desalination plant’s daily potable
water output will be the largest in the
world, sufficient to meet the needs of
3.5 million people.
“This project illustrates the global
supply chain at work for us,” said Kevin
Cain, UNITI President. “The slabs are
12
SPRING / SUMMER 2011
made in the U.S. and
Russia, rolled in the
U.S., then sent to South
Korea where the titanium
strip is manufactured
into tubing. South
Korea is also where
the desalination
plants are engineered
and manufactured
before being shipped
to the Middle East
for assembly. Any
titanium scrap from the
manufacturing process gets recycled as
part of ATI/UNITI sustainability practices,
as well.”
“The titanium from UNITI offers
excellent performance in the desalination
application,” Moulton said. “The super
ferritics and other alloys we have, including
AL 29-4C superferritic stainless from ATI
Allegheny Ludlum and grade 2 titanium
tubing and sheet from UNITI, have led to
ATI receiving numerous orders over the
past year, contributing to ATI’s significant
revenue growth outside of North America.”
Stainless steels from ATI also
are part of the desalination mix. ATI’s
AL-6XN superaustenitic stainless plate
and sheet products were used on the
largest desalination plant in the U.S. in
®
®
Titanium strip that is used for tubing in
desalination plants is finished and cut-to-size
at the slitter at our Louisville, OH facility.
Titanium sheet and tubing are
used in the conversion of seawater
into clean, potable water.
Tampa Bay, FL along with other stainless
alloys manufactured by ATI used for
piping, j-bend connectors, feed liners,
and other applications.
“Because of the comprehensive nature of
our alloy base, we can provide virtually any alloy
needed for the desalination process,” Moulton
noted. “We have a broader alloy offering than
any other metals producer in the world.”
The titanium from UNITI
offers excellent performance
in the desalination application.
“Titanium became popular as power
plants started to be built near oceans, taking
advantage of saltwater to cool turbines,”
Moulton said. “Desalination also needed
alloys impervious to seawater, and titanium
with its long history of performance is a
logical choice.”
“At the same time, the price of copper
and brass tubing, which had been used for
years, began to escalate, making titanium
more commercially competitive,” Moulton
said. “ATI is bidding now on huge new
desalination plants around the world.”
Added UNITI’s Cain, “With each
desalination plant that gets built, hundreds
of local jobs get created for people in
the region, adding more benefit beyond
the long-term provision of fresh water for
consumption and crops.”
ATI Tungsten Materials Transforms
Specialty Metals into Key Components
By Tim Hayes, Business Writer
When you go to the big home improvement
store for lumber, having someone there to
cut it to your specifications sure is nice.
When you buy a pound of coffee beans at
the supermarket, being able to grind them
right there helps make life easier in the
morning.
The same principle – providing an
additional service to a big purchase that
adds real value at an economical cost – has
spelled success for ATI’s year-old Tungsten
Materials group, a consolidation and rebranding of a number of former ATI product
lines. ATI Tungsten Materials President Bob
Wetherbee explained his business this way.
“Tungsten is one of the hardest minerals
on earth. At ATI Tungsten Materials, we use
it as the base material for industrial cutting
tools, oil & gas drilling, and aerospace
components.”
“Tungsten is a great material for cutting
specialty metals,” he said. “How do our
customers turn titanium plate into a finished
product? How do drilling contractors
reach ever-more-challenging depths in their
search for petroleum reserves? They use
tungsten tools to do the cutting.”
ATI Tungsten Materials is geared toward
a different type of business. “We’re a consumable,” said Wetherbee. “Our average
cutting tool order size is under $1,000.
The one-stop-shop nature of ATI Tungsten
Materials doesn’t happen without regular
interaction and cooperation between the
group and other ATI businesses. Offering
this type of service is better for our customer
base because it demonstrates to them that
ATI can bring the most effective solution to
turn material into a finished part.”
“We leverage customers from the
other ATI groups – ATI Allegheny Ludlum,
ATI Allvac, and ATI Wah Chang,” explained
Wetherbee. “Because we work with such
small projects, generating lower rates of
revenue per job, that makes us unique within
ATI. Because we’re working from a business
model based on volume, we benefit
significantly from our connection with the
ATI Tungsten Materials President Bob Wetherbee (center) talks
with Jimmy Ash, Grinder II Operator, and Dave Sanders, Grinding
and Steel Products Manager, in front of the 5-axis tungsten carbide
insert grinding machine at our LaVergne, TN operations.
businesses within the larger corporation.”
Since arriving a year ago to run ATI
Tungsten Materials, Wetherbee has helped
transition the business from a sales strategy
based on geographic location to one based
on end-user markets. By aligning more
closely with the ATI market-sector approach,
the group has made impressive gains.
“The one-stop-shop nature of
ATI Tungsten Materials doesn’t
happen without regular interaction
and cooperation between the
group and other ATI businesses.”
“For example, at an ATI Oil & Gas
market sector meeting in Houston recently,
representatives from all ATI business units
talked about key customers and overlapping
opportunities, which opened more specific
doors in many directions,” said Wetherbee.
“In the aerospace market, when a customer
of another ATI business unit has a difficultto-machine part, we provide the tools and
machining know-how that meets – and
frequently exceeds – the customer’s needs.
“This kind of proactive cooperation
helps the customer too,” he added. “It saves
them time and money, and they get the
same quality and service from us that they
get from the part of ATI that made the
metal. Our goal is to have more of these
transactions initiate closer to where ATI
people are interacting with the customer,
so that they happen more often.”
Looking ahead to the next three to
five years, Wetherbee said the group will
continue to expand in Asia, noting huge
opportunities for cutting tools and tungsten
components in key markets such as aerospace, power generation, and oil and gas.
“Most of all, we want a safe working
environment that’s focused on customer
service,” he said. “My impression after the
first year here is that two things have made
it exciting for me – the ATI core values and
the focus on strategic markets.”
SPRING / SUMMER 2011 13
Star Performers
If the immaculate condition of the hydrostatic compaction
gun room is any indication, Denny Buck is well-suited to
the precision requirements of his position as a Hydrostatic
Compaction Gun Room Operator. Denny works in powder
metallurgy, in the compaction gun room, and is responsible for
ensuring that alloys processed there are delivered in a timely
manner to meet needs for other departments and/or chemistry
for shipping and selling purposes. Denny started working at ATI
Wah Chang 10 years ago. His first position was a nine-month
stint in Pure Chlorination. He then moved over to the compaction
gun room, where he has spent the bulk of his time at ATI Wah
Chang. He is seen here with the 16" Hydrostatic Compaction
Gun, which is designed to combine water and pressure to powder
and/or sponge to compact it into a solid form for melting. In true
Northwest fashion, Denny likes to spend his spare time golfing,
fishing, hunting, and camping.
Juergen Gross, Managing Director – Europe for ATI Allegheny
Ludlum’s Precision Rolled Strip (PRS) products business, loves
the new and challenging objectives his position provides. With
more than 30 years with ATI, Juergen currently is responsible for
both commercial and operational management of our Remscheid,
Germany Service Center. He also leads the shared services
supporting both our titanium & specialty plate business and ATI
Europe Distribution. While leading the day-to-day organization,
Juergen was critical in the growth of the PRS business, which
ultimately required moving to a new and larger facility. While the
Remscheid Service Center is mostly focused on the EU, the team
also services Russia, South Africa, and some parts of China. The true
success of Remscheid is best shown by very high levels of customer
service and satisfaction. During his free time, Juergen enjoys his
family who live close by, including two grandchildren. He also enjoys
winter hiking in the Alps and warm weather vacations to the beaches
of Spain or the Mediterranean Sea.
®
In 2005, Achim Wrona started his career with ATI Europe in
Germany. He is an inside sales representative and contributes to
sales growth and our reputation for excellent customer service.
He has earned the respect of the customers he works with, and
they speak very highly of his work ethic and integrity. Achim enjoys
working for ATI and looks forward to continuing his career with
our company and gaining more responsibilities. Outside of work,
Achim enjoys listening to music and cheers for the VfL Bochum
soccer team.
14
SPRING / SUMMER 2011
Mick Redfearn is a relative newcomer to ATI Allvac Ltd, having
started with the Company just four years ago as Maintenance
Supervisor, Cyclops Works. He has quickly progressed to the
position of Engineering and Maintenance Manager, assuming
responsibility for all Engineering and Maintenance practices across
all Sheffield, UK operations. Mick has been an integral part of the
recent expansion program and bringing the Precision Machining
Facility at ATI Allvac Ltd from conception to completion. This project
was challenging and his hard work, exceptional project planning
and execution skills, coupled with his positive attitude, quickly
gained him the respect of other colleagues. Mick also enjoys
spending time with Nicola, his wife of 19 years, walking in the
countryside and dining out with friends.
Thomas Lowson III, Surface Grinder Operator, has 35 years of
service at the ATI Stellram facility in Waynesboro, PA with his entire
career being spent in the Landis Threading Systems Tangential
Chaser Department. Throughout his career he has operated an array
of key manufacturing machines. Thomas is always willing to make
the customer’s needs the most important priority of his working day
and is also a member of the Safety Committee, working diligently to
ensure the safety of all employees. Tom also has over 45 years of
active participation in the Boy Scouts of America and is currently a
Scoutmaster and the Mason-Dixon Council Advancement Chairman.
Having become an Eagle Scout himself in 1971, he continues to help
local youths along a similar path. His personal philosophy is “we must
give back” and he exemplifies this in his commitment to the community
and his work at ATI. Tom brings to work with him every day the lessons
learned from years of training and experiences with the Scouts, and the
Waynesboro facility is a better place to work because of his service.
®
Koji Tanaka, General Sales Manager at the ATI Asia Japan
Sales Office, has been working in the titanium industry for more
than 30 years. Koji leads the sales department at our office
in Tokyo, Japan that markets and sells many of ATI’s products
in the Japanese marketplace. He has worked at the Tokyo office
for the last 12 years and says, “I have enjoyed my time since
joining ATI and working with the finest people in all of the ATI
organizations.” Koji continued to say how proud he is to be a
part of the #1 mill producer of titanium in the world. Outside of
work, Koji loves watching sports; baseball, football, basketball
and golf are his favorites.
SPRING / SUMMER 2011 15
Message from the ATI
Corporate Ethics Office
By Elliot S. Davis, Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary
Consistent with our commitment to
Each of us must exercise good judgment
If you believe that you are the victim of
Do What’s Right , ATI strictly prohibits all
to act in a responsible and professional
discrimination, harassment or intimidation,
forms of discrimination and harassment
manner that contributes toward a dignified
or you have witnessed such conduct,
based on race, color, national or ethnic
and respectful working environment.
you should immediately report that fact to
origin, religion or belief, gender, sexual
Although not exhaustive, the following
your manager or by using any of our other
orientation (which we interpret to include
are examples of harassing
Ethics Resources.
gender identity), age (per applicable federal
conduct prohibited by ATI:
and state law), disability or any other
• Verbal – any form of
®
unlawful reason. But ATI’s commitment
derogatory comments or
to Do What’s Right requires more than
threats such as abusive
merely complying with the law. At ATI,
name-calling, slurs, slang,
®
we expect everyone to be treated with
epithets or stereotyping
dignity and respect. No one should ever
• Physical – unwelcome
be subject to bullying or abusive behavior
touching or contact of
at work for any reason, and ATI has zero
any kind or any physical
tolerance for workplace harassment.
interference with
Harassment can take many forms, and
someone’s normal
it is not possible to catalogue every possible
work environment
manner in which our policy can be violated.
or movement
• Visual / Electronic – any form of
derogatory image or text, including
pictures, posters, cartoons, drawings,
graffiti, symbols or jokes regardless
and the Company will not take or tolerate
of form (e.g., hardcopy, email, instant
any form of retaliation or retribution
message (IM), text, etc.).
against anyone who honestly reports a
In addition, we all must be aware of
Each of us must use good
judgment to act in a responsible
and professional manner that
contributes toward a dignified and
respectful working environment.
ATI will fully investigate all reports,
suspected violation of Company policy. If
and vigilant in our efforts to prevent sexual
the investigation establishes a violation of
harassment which, in addition to gender-
Company policy, ATI will take prompt and
based conduct in any of the forms identified
effective action to remedy the situation,
above, also encompasses unwelcomed
including disciplining or discharging any
sexual advances, including requests or
individual found to have violated our policy
demands for sexual favors.
against harassment.
Do you have ethics questions or concerns?
Contact your manager, human resources, organization head or business unit president,
your facility’s ethics officer, Elliot S. Davis, Senior Vice President, General Counsel,
Chief Compliance Officer and Corporate Secretary, at 412.394.2835
or Elliot.Davis@ATImetals.com or contact the confidential
ATI Ethics Helpline* by phone: 1-800-777-8767 (toll-free in U.S.) or on the web at
www.ATIEthicsHelpLine.ethicspoint.com
* Operated by EthicsPoint, Inc.
16
SPRING / SUMMER 2011
Value-based leadership
ATI and its operating companies represent who we are as individuals. A company is always
best described by the values expressed in the actions of its leaders and its employees,
consultants and agents.
INTEGRITY is the cornerstone of our business. To that end, we must live by the value of
honesty and being forthright. Each of us has a critical role in a company that values integrity,
accountability and the environment. We must never sacrifice ethics for profit. Excellence in
our business is built upon the foundation of the highest standards of ethical performance.
Richard J. Harshman
Chairman, President and Chief Executive Officer
ATIfocus
ATI Corporate Headquarters:
1000 Six PPG Place
Pittsburgh, PA 15222-5479
ATI is a growing, global
company with 11,000
ATI focus Editorial Board:
Cheryl Botti – ATI Allegheny Ludlum
Email: Cheryl.Botti@ATImetals.com
www.ATImetals.com
Howard Freese – ATI Allvac
Email: Howard.Freese@ATImetals.com
© 2011 ATI. All rights reserved.
Trent Mackenzie – ATI Asia
Email: Trent.Mackenzie@ATImetals.com
412.394.2800
Reproduction of this magazine by any
means, in whole or in part, without
written permission by ATI is prohibited.
Layout by Bradley Brown Design Group
Contributing Writers: Brad Fisher,
Tim Hayes
Stephanie O’Connor – ATI Defense
Email: Stephanie.O’Connor@ATImetals.com
employees located
worldwide. Displayed
above are flags of some
of the countries where our
employees are located.
United States, Australia,
Steve Ortiz – ATI Engineered Products
Email: Steve.Ortiz@ATImetals.com
Italy, Taiwan, Germany,
Bastian Preuss – ATI Europe
Email: Bastian.Preuss@ATImetals.com
Switzerland, China,
Kirk Richardson – ATI Wah Chang
Email: Kirk.Richardson@ATImetals.com
France, UK, and India.
Editor:
Matt Shaffer – ATI Corporate
Email: Matt.Shaffer@ATImetals.com
SPRING / SUMMER 2011 17