UPDATE 1-Allegheny Tech sees markets improving this year

* Sees growth in aerospace and energy

* Expects 2010 capital investments of $375 mln

* Shares up 1 pct

NEW YORK, March 31 (Reuters) - Metals processor Allegheny Technologies Inc (ATI.N) said it believes the worst of the recession is over and it expects steady growth in its markets, especially aerospace and energy.

"We think 2009 was the bottom," Chairman, President and Chief Executive Pat Hassey said in a statement included in a Wednesday filing with the Securities and Exchange Commission.

"We view 2010 as the transition year from the global recession of 2009 to the resumption of the secular growth trends in our key global markets in 2011 and beyond."

Hassey said several trends indicated industrial demand was increasing for Allegheny's specialty metals, which include titanium, stainless steels and nickel-based alloys.

He noted recent positive testing of Boeing Co's (BA.N) Dreamliner aircraft, which uses composite/titanium intensive airframes and is powered by new jet engines. Three major Allegheny customers -- Boeing, GE Aviation (GE.N) and Rolls-Royce (RR.L) -- are involved in the project.

Hassey also sees opportunities in the oil and gas market, with large deep-water projects in the Gulf of Mexico, the North Sea and in waters off Brazil and Africa demanding significant amounts of specialty metal products.

"Growth in demand for our products is also expected from large liquefied natural gas (LNG) and shale gas projects," he said.

Allegheny expects 2010 capital investments to be about $375 million, down from $454 million of capital investments and asset acquisitions in 2009.

The company's shares were up 54 cents at $55.00 in early trading on the New York Stock Exchange. (Reporting by Steve James; editing by John Wallace)