Carnegie, PA (June 13, 2016) – Ampco-Pittsburgh Corporation (NYSE: AP) announced today that its subsidiary, Union Electric Steel Corporation (“Union Electric Steel”), will raise prices on forged and cast roll products that it and its subsidiaries produce globally. These subsidiaries include the recently acquired companies formerly comprising the Åkers Group (“Åkers”). This increase is effective July 1, 2016, or as relevant contract terms permit.
For more than five years, Union Electric Steel’s customers in the steel industry faced challenging market conditions, including severe pricing pressure on their products. Union Electric Steel, including Åkers, supported the industry throughout this difficult period by agreeing to price concessions on forged and cast rolls. The compounding effect of these annual roll price decreases has had a significant adverse effect on Union Electric Steel’s financial performance.
Commenting on the announcement, Rodney Scagline, President of Union Electric Steel, stated, “In 2016, global steel prices have reportedly increased by approximately 25% which, we believe, should have a positive effect on steel manufacturers’ financial results. The modest price increase that we are announcing today is intended to begin the recovery process for our roll business, and place Union Electric Steel on a path to profitability. Pricing will be determined on a by-product basis for both forged and cast roll products, but should average five percent.”
Contact:
Melanie L. Sprowson
Director, Investor Relations
+1 412-429-2454
msprowson@ampcopgh.com
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation, through its operating subsidiaries, is a leading producer of forged and cast rolls for the worldwide steel and aluminum industries as well as ingot and open die forged products for the oil and gas, aluminum, and plastic extrusion industries. It is also a producer of air and liquid processing equipment, primarily custom-engineered finned tube heat exchange coils, large custom air handling systems and centrifugal pumps. Ampco-Pittsburgh Corporation operates manufacturing facilities in the United States, United Kingdom, Sweden, Slovenia, and China. Sales offices are located in North and South America, Asia, Europe, and the Middle East. Corporate headquarters is located in Carnegie, Pennsylvania.
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