Ampco-Pittsburgh makes two categories of specialty industrial products through two segments. The Forged and Cast Engineered Products (FCEP) segment — roughly two-thirds of revenue — manufactures hardened steel rolls used in steel and aluminum rolling mills, along with specialty forged steel products sold into steel distribution, oil and gas, and extrusion industries. Rolls are consumable components that mills must continually replace, making FCEP's revenue tied to global steel mill utilization rates. FCEP operates manufacturing facilities in Pennsylvania, Indiana, Sweden, and Slovenia, plus two joint ventures in China. The Air and Liquid Processing (ALP) segment — roughly one-third of revenue — makes three lines of custom-engineered products: heat exchange coils for nuclear and industrial applications, large custom air handling systems for hospitals, universities, and pharmaceutical plants, and centrifugal pumps for fossil-fuel power generation, U.S. Navy vessels, and industrial refrigeration. Ampco-Pittsburgh sells custom, project-based products directly to sophisticated industrial customers, and passes most raw material cost changes through to customers via surcharges. The company's near-term priorities are restructuring FCEP — including shutting down a chronically unprofitable UK cast roll plant and closing a small Ohio steel distribution business — while investing in ALP capacity to serve growing demand in nuclear power, U.S. Navy fleet expansion, and domestic pharmaceutical manufacturing.
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