Metallus [MTUS] on Tuesday said it has entered an agreement with the Army for up to $99 million to expand the company’s capacity to produce specialty metals used in the production of artillery shells.
The Ohio-based company, which was formerly known as TimkenSteel, said half of the funding has been obligated and the rest will be provided in phases after project details are finalized. Metallus projects that the new capability will be ready in late 2025.
Metallus said the funding will boost production of “high-quality bar-based product” used in artillery shells. The increased production capacity will support about $60 million in higher annual sales, it said.
In response to questions from Defense Daily, Metallus said that it is using the funding to install and commission a new Bloom Reheat Furnace that will boost capacity to reheat blooms–semi-finished steel products–into bar sizes specified by customers. The company is also assessing additional heat treatment and finishing line upgrade and expects to boost hiring to support project management and engineering during the capacity expansion.
On its website, Metallus says its supplies long-length materials for artillery and munitions, including several medium- and large-caliber munitions such as 155mm rounds. The bars are supplied to prime contractors that produce artillery shells.
“Metallus is honored to expand our commitment to the defense sector, reliably providing high-quality specialty metals for critical applications,” Mike Williams, president and CEO of the company, said in a statement. “With this funding, we intend to further optimize our assets to meet the Department of Defense’s heightened demand while reducing our carbon footprint.”
The location of the capacity expansion will be announced soon, Metallus said.
The funding is part of ongoing DoD efforts to expand the supply chain and strengthen the defense industrial base for munitions and other defense production.