General Electric Company (NYSE:GE) and Allegheny Technologies Incorporated (NYSE:ATI) announced on Tuesday that they have teamed up to work on a meltless titanium joint venture.
The two firms will work together in the new project which aims to come up with a new manufacturing technology for meltless titanium alloy. The joint venture will work on building a new production facility for research and development. They will develop the titanium alloy powders for use in additive manufacturing such as 3D printing. ATI is expected to offer technical, operational and project support to the joint venture while GE Aviation will offer its technical knowledge, engineering and development capabilities in the use of alloyed titanium.
“We are pleased to join with GE Aviation to create this innovative next-generation technology joint venture. The science of specialty metal powders is a transformative technology and we intend to maintain and enhance our industry-leading position,” stated Rich Harshman, the chairman, president and CEO of ATI.
Both firms to benefit from the synergies offered by the joint venture
The joint venture between the two companies is expected to take advantage of ATI’s technology, quality leadership, and manufacturing. It applies these factors in the production of nickel-based alloys, premium-quality titanium and specialty metal powders. GE Aviation CEO David Joyce stated that creating new material has always been an important part of his company’s business. He also pointed out that GE Aviation was excited to be working together with ATI, especially given that it is a recognized leader in advanced specialty materials.
The two firms are optimistic that their joint venture will yield significant progress. However, they did not reveal any timeline regarding the construction of the facility. It is thus not clear when they will commence the project and when they expect it to come to a completion. Regardless, both companies are confident that the new facility will help in the production of high-quality materials through joint research. Perhaps it will even play a key role in significantly adding to the topline growth for both firms in the future.
ATI stock closed the latest trading session on Tuesday at $17.63.
