Rich Harshman, CEO of Allegheny Technologies Inc. (Credit Photo @ Joe Wojcik -BizJournal )
United States Steel Corp. is among those likely to consider a joint venture partnership with Allegheny Technologies Inc. on its new hot-rolling and processing facility in Brackenridge, according equity research firm Cowen and Co. ATI (NYSE: ATI) has said it is working with two different steel companies on securing a joint venture, but the company has not identified the companies. ATI spokesman Dan Greenfield said the company has no intention of releasing any names until an agreement is reached.”Our number-one priority is to qualify ATI’s products and we intend to focus on that,” he said. “We’ll get to the joint venture discussion when it’s timely.” Analysts from New York-based Cowen said they expect any joint venture on the $1.2 billion facility would likely be in the range of $400 million to $600 million in equity that would be deployed over a period of time. ATI and the partner would share time on the mill, as ATI is only expected to fully ramp up to 50 percent to 60 percent of the total mill, according to a Sept. 19 note from the firm. The facility would be a prime target for steelmakers looking to process Generation 3 and ultra high-strength steels. Along with U.S. Steel (NYSE: X), ArcelorMittal (NYSE: MT) and AK Steel (NYSE: AKS) were listed as potential partners, but the firm noted U.S. Steel has the most geographic synergies, and transportation to and from the facility could be a significant cost for companies with operations outside the region. A spokeswoman for U.S. Steel said the company does not comment on speculation.