IBC Advanced Alloys Corp. announced that it will focus on its profitable Copper Alloys division in Franklin, Ind., and cease production this summer at its Massachusetts beryllium-aluminum alloy plant because of insufficient long-term demand for cast beryllium-aluminum alloy products. IBC anticipates that the move will expand free cash flow, strengthen gross margins, and position the Company on a better path to sustained profitability.

IBC's Copper Alloys division has operated profitably since the quarter ended September 30, 2020, for a total of 14 quarters. The Copper Alloys division operates a vertically integrated copper alloy production facility in Indiana, which takes raw material through foundry, forge, and rough and final machining. Since navigating the market disruptions of the COVID pandemic, consolidating three copper alloy plants into one facility in 2022, and completing construction of its modernized and expanded production facility in Franklin, Ind.

in 2022, the division has significantly grown revenue, generated more robust Free Cash Flow, improved its gross profit margins, and operated profitably. While the Copper Alloys division has operated profitably, there is no guarantee that IBC Advanced Alloys will achieve profitability on a consolidated basis. The Company's decision to close its Engineered Materials division ("EMC") was driven primarily by insufficient long- term demand for cast beryllium-aluminum alloy products and the resulting continuing losses.

EMC's net losses, which included a loss of $7.4 million in the 12 months ended June 30, 2023, and a loss of $5.2 million in the trailing 12 months ended December 31, 2023, depleted available working capital for the Copper Alloys division at a time when demand for copper alloy products was growing. Prior to halting operations in Massachusetts, IBC intends to complete its existing production contracts for beryllium-aluminum alloy products, including components it manufactures for the F-35 aircraft and other defense systems. Alternative production of these alloy parts for the F-35 and other defense systems is expected to be available after IBC closes its Massachusetts facility, which employs 24 workers. The Company expects to incur a charge to operations in respect of the plant closure and is negotiating with suppliers and its landlord to minimize such costs.