ATI Inc. Opens Advanced Machining Facility in Chihuahua

ATI Inc. has commenced operations at a new advanced manufacturing and inspection facility in Chihuahua, Mexico, consolidating critical post-forging processes for aerospace engine components into a single location.

Announced on June 23, 2026, the greenfield site integrates machining, nondestructive testing, finishing, and quality verification. The expansion is designed to alleviate persistent supply chain bottlenecks and support production ramps for both legacy and next-generation aerospace engine programs.

Streamlining the aerospace forging flow path

The Chihuahua facility allows ATI to move critical aerospace components directly from forging through final inspection within a unified operational footprint. By co-locating advanced machining with nondestructive testing and finishing, the company aims to reduce transit times and simplify the supply chain for engine manufacturers.

ATI Board Chair, President, and CEO Kimberly A. Fields stated that the investment strengthens a critical part of the aerospace value stream.

“As demand for advanced aerospace engines continues to grow, this expanded capacity enables ATI to deliver high-quality products with increased throughput and the differentiated performance our customers need. ATI is improving supply chain resilience to support industry growth,” Fields said.

Capital investments and recent strategic agreements

Funding for the new Mexican facility is accounted for within ATI’s existing capital expenditure guidance. The operational launch follows a series of financial and strategic moves by the company earlier in the month.

On June 3, 2026, ATI priced a $450 million public offering of 5.875% Senior Notes due in 2033. Shortly after, on June 11, 2026, the company secured a long-term strategic material supply agreement with BWX Technologies to support the US Naval Nuclear Propulsion Program through fiscal year 2030.

AirPro News analysis

Aerospace engine supply chains remain one of the most significant choke points for commercial aircraft production. Engine manufacturers face persistent delays in sourcing forged components, which require rigorous nondestructive testing and precision machining before they can be integrated into a powerplant. We view ATI’s decision to consolidate these post-forging steps in a single facility as a practical measure to eliminate logistical handoffs. By reducing the physical distance parts must travel between forging and final inspection, suppliers can incrementally improve throughput and help original equipment manufacturers meet their delivery targets.

Sources: ATI Inc. via PR Newswire (Facility Announcement)