Metallus formerly known as TimkenSteel and a leader in high-quality specialty metals, manufactured components, and supply chain solutions, today announced that the company has entered an agreement for up to $99 million in funding from the United States Army, half of which is currently obligated with the balance subject to mutual agreement during subsequent phases after the final project details are presented to the Army. This funding will support a project aimed at bolstering the Army's mission of ramping up artillery shell production in the coming years.

Specifically, this project will enable the development of additional capacity to help fulfill increased global demand for artillery shells. The new capability is expected to increase throughput of high-quality bar-based products used in artillery applications and support approximately $60 million of incremental base sales annually, demand dependent. The company is targeting late 2025 for this new capability to be operational with funding to be provided throughout the procurement and installation process.

"Metallus is honored to expand our commitment to the defense sector, reliably providing high-quality specialty metals for critical applications. With this funding, we intend to further optimize our assets to meet the Department of Defense's heightened demand while reducing our carbon footprint," affirmed Mike Williams, President and CEO.

The 2022 National Defense Strategy outlines the Department of Defense's commitment to establishing a modernized and coordinated defense industrial network. This initiative aims to develop a reliable and resilient supply chain of industrial partners over the next several years that will significantly enhance the nation's defense capabilities for the long-term.

This press release has been approved by the United States Government: DISTRIBUTION STATEMENT A: Approved for public release; distribution unlimited.  PAO Log# 248-24

 

Source:prnewswire.com

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