Carpenter Technology and Sandvik Establish Cooperation in Powder Metal Products
October 19 2010 - 7:00AM
Business Wire
Carpenter Technology Corporation (NYSE: CRS) has established a
strategic partnership with Sandvik Materials Technology to further
strengthen its leadership position in high-performance powder metal
products. As part of the joint venture arrangement, Carpenter
Technology Corporation will acquire a 40 percent interest in
Sandvik Powdermet AB and Sandvik AB will acquire a 40 percent
interest in Carpenter Powder Products AB.
Carpenter Powder Products AB, a unit of Carpenter Technology
based in Torshalla, Sweden, manufactures high-alloy powder and is
currently one of Sandvik Powdermet AB’s major suppliers. The joint
venture will provide Carpenter with access to Sandvik Powdermet
AB’s market for near-net-shape powder products, and will ensure
Sandvik’s long-term supply of high quality powder. The cooperation
is expected to provide accelerated growth opportunities for both
companies in powder metal markets. The two businesses will continue
to operate under their current respective brands, Carpenter and
Sandvik.
“We are committed to enhancing our market position in powder
manufacturing and technology, which will strengthen our portfolio
of high-value, differentiated products and provide a vehicle for
continued future growth,” said William A. Wulfsohn, President and
Chief Executive Officer of Carpenter Technology. “This partnership
will further establish Carpenter as a leading global supplier of
technologically advanced materials required by the energy and other
demanding market sectors.
Carpenter believes that collaborations with strong
partners such as Sandvik will provide a strong foundation for
developing new growth opportunities.”
“Powder technology is one of the development areas to which we
have assigned highest priority to enable us to further strengthen
our position in the field of advanced materials in, for example,
the rapidly expanding energy sector,” said Peter Gossas, President
of the Sandvik Materials Technology business area. “The strategic
partnership with Carpenter Technology in this area makes us a
leading player in the field of powder technology.”
Carpenter Powder Products has additional powder manufacturing
operations in Bridgeville, PA and Woonsocket, RI, and powder
R&D in Reading, PA. Sandvik Materials Technology also has
powder technology operations in Wales (Sandvik Osprey Ltd), powder
manufacturing in Surahammar, Sweden and a powder technology R&D
unit in Sandviken, Sweden. These units will not be included in the
joint venture.
Carpenter Powder Products AB is a diversified manufacturer of
high-alloy metal powder products, focusing primarily in energy and
industrial markets. The company, located in Torshälla, Sweden, has
about 50 employees and annual sales of approximately $21 million US
or 150 million SEK.
Sandvik Powdermet AB is specialized with respect to development,
manufacturing, sales and marketing of powder-based products
delivered in the form of near-net shapes. The company, located in
Surahammar, Sweden, has about 30 employees and annual sales of
approximately 150 million SEK.
About Carpenter Technology
Carpenter produces and distributes conventional and powder metal
specialty alloys, including stainless steels, titanium alloys, tool
steels and superalloys. Information about Carpenter can be found on
the Internet at http://www.cartech.com.
Statements in this news release which are not historical facts
are forward-looking statements within the meaning of the Private
Securities Litigation Act of 1995. These forward-looking statements
are subject to risk factors and uncertainties that could cause
actual results to differ from those projected, anticipated or
implied. The most significant of these uncertainties are described
in Carpenter's filings with the Securities and Exchange Commission
including its annual report on Form 10-K for the year ended June
30, 2010 and the exhibits attached to that filing. Further, factors
that could cause actual results to differ materially from
forward-looking statements include, but are not limited to, the
following: our ability to successfully establish the joint venture
arrangement with Sandvik, our ability to achieve accelerated growth
opportunities in powder metal markets, our ability to enhance our
market position in powder manufacturing and technology, our ability
to successfully develop new products, compliance with government
regulations, changes in the competitive environment or the effects
of competition in our markets, and general economic conditions
affecting the industries we serve. Any of these factors could have
an adverse and/or fluctuating effect on Carpenter's results of
operations. The forward-looking statements in this document are
intended to be subject to the safe harbor protection provided by
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Carpenter
undertakes no obligation to update or revise any forward-looking
statements.
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