Carpenter Signs Multi-Level Agreement with UTC; Will Build New Facility for Superalloy Powders
October 01 2013 - 9:00AM
Business Wire
10-Year Supply Agreement Also Reached with Aerospace Business
Units
Carpenter Technology Corporation (NYSE: CRS) has reached a
multi-level agreement with United Technologies Corporation (UTC),
through its Pratt & Whitney Division, which includes licensing
technology associated with the production of superalloy powders and
a long-term supply agreement. Carpenter also plans to build a
superalloy powder facility which is expected to take approximately
18 months to construct at an estimated cost of $20 million. Once
the facility is qualified by Pratt & Whitney, Carpenter will
supply Pratt & Whitney with superalloy powder for up to 20
years.
Additionally, UTC’s aerospace business units (Pratt &
Whitney, Pratt & Whitney Canada Corp., UTC Aerospace Systems
and Sikorsky Aircraft Corporation) have agreed to purchase alloy
steel bar/billet, nickel superalloy billet, stainless bar/billet,
and strip laminate products from Carpenter for a period of ten
years. Carpenter currently supplies UTC’s aerospace businesses with
a portion of their overall demand for nickel, stainless, and strip
laminate products.
“We are pleased with UTC’s agreement that will expand our supply
position,” said William A. Wulfsohn, Carpenter’s President &
CEO. “This agreement, which could potentially yield in excess of
$600 million in sales over the term of the agreement, reinforces
our belief that the investment we are making to expand capacity
with our Athens Operations (Alabama) is needed and will lead to
increased customer sales.”
Global demand for superalloy powder is expected to grow
substantially as aircraft engine temperatures increase. Carpenter’s
entrance into this market segment reflects its confidence in
superalloy powder demand for additional applications such as those
used in energy and additive manufacturing.
About Carpenter Technology
Corporation
Carpenter Technology Corporation, based in Wyomissing, Pa.,
produces and distributes specialty alloys, including stainless
steels, titanium alloys and superalloys, and various engineered
products. Information about Carpenter can be found at
www.cartech.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on management’s current
expectations and are subject to risks, uncertainties and other
factors 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, 2013, and the exhibits
attached to those filings. They also include, but are not limited
to, the ability to construct a superalloy powder facility in
approximately 18 months and the qualification of that facility by
Pratt & Whitney, the demand and purchase of Carpenter’s
products by UTC’s aerospace business units, the ability to achieve
targets which could potentially yield in excess of $600 million
dollars in sales over the term of the agreement, the ability to
expand capacity with our Athens Operations, the growth of global
demand for superalloy powder as aircraft engine temperatures
increase, and the demand for additional applications such as those
used in energy and additive manufacturing. Carpenter undertakes no
obligation to update or revise any forward-looking statements.
Carpenter Technology CorporationMedia Inquiries:William J.
Rudolph, Jr., 610-208-3892wrudolph@cartech.comorInvestor
Inquiries:Michael A. Hajost, 610-208-3476mhajost@cartech.com
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