latrobe specialty steel amm aerospace metals conference pittsburgh, pa dan hennessy v.p. -...
TRANSCRIPT
LATROBE SPECIALTY STEEL
AMM Aerospace Metals Conference
Pittsburgh, PA
Dan HennessyV.P. - Manufacturing
April 11, 2007
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Outline
LSS History
LSS Capital Investment
Market Conditions
Future Aircraft requirements
LSS Response
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Latrobe Specialty Steel
Latrobe Electric Steel Company founded in 1913
Became part of The Timken Company in 1975
Sold by Timken on December 8, 2006 to a group led by Watermill Ventures and Hicks Holdings
Reliably supply high performance materials and related services
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Latrobe Specialty Steel
From inception began developing high alloyed steels for specialized applications
Began producing remelted aerospace steels – 1958 VIM and VAR One of the first producers
Today Largest global producer of remelted steels Largest domestic producer of high speed steel Largest master distributor of tool steels
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Capital Expenditures Invested $100+M from 1990 - 2000
Forging facility, remelt capacity, machining plant
2001 – 2006 invested additional $35M Additional remelting capacity,
added VIM capacity, grinding capacity, sawing capacity, upgraded rolling mill
Result: Modern well equipped facilities for our market segments
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Aerospace Assets
Operating Today: 13 vacuum arc remelt furnaces Three of the largest in the world 30 ton VIM Numerous approvals and process agreements Largest number of grades in the industry Maintaining a dedicated technical department for
CI, customer service and product development
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Current Market Condition Boeing and Airbus forecast is stable
Will produce 900+ planes per year Growth of defense related market These combine to drive abnormally high demand However the aerospace market will remain cyclical
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Boeing Airbus Bombardier Embraer
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Steel Industry’s Reaction
Capacity added at many producers
Last year LSS: added two vacuum
remelt furnaces Downstream
processing equipment Manpower
Result: Lead time reduction however lead time remains long
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Future Outlook
Continued significant requirements for aerospace steels on future commercial aircraft due to:
Combination of strength, ductility and fracture toughness unmatched in materials
Ex. A380 landing gear – one of two globally approved producers
Future aircraft will continue this trend Producers will require extensive technological
expertise and service
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LSS Plans
Add additional capacity to further reduce lead time Will add another large remelt furnace
Start-up first quarter, 2008 Considering other investments
Expect lead times to become reasonable prior to any new entrants becoming certified
Continue to extend our position in marketplace Technological leadership in premium aerospace steels Service leadership in our markets
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Questions?