Global Demand for Superalloy Powder Expected to Grow Substantially
WYOMISSING, Pa.--(BUSINESS WIRE)--Oct. 22, 2013--
Carpenter Technology Corporation (NYSE:CRS) will build its new
superalloy powder facility in Alabama, directly across the street from
its nearly-completed $518 million ultra-premium product manufacturing
facility near Athens in Limestone County.
Today’s news comes three weeks after Carpenter announced a multi-faceted
agreement with United Technologies Corporation (UTC), through its Pratt
& Whitney Division, which includes licensing technology associated with
the production of superalloy powders and a supply agreement for up to 20
years.
The superalloy powder facility is expected to begin production in late
2015. Once the facility is qualified by Pratt & Whitney following
construction, Carpenter will supply Pratt & Whitney with superalloy
powder for use in aircraft engines. “The capital cost of this project
falls within the annual $120 million capital spend guidelines that were
previously outlined for the period following the completion of the main
Athens plant,” said Tony Thene, Carpenter’s Chief Financial Officer.
“Alabama is proving to be an excellent region for us,” said William A.
Wulfsohn, Carpenter’s President & CEO. “There were several reasons why
we selected Athens two years ago, including the location being ideal for
future growth and expansion. We also remain extremely impressed with our
access to a strong pool of skilled workers.”
Global demand for superalloy powder is expected to grow substantially as
aircraft engine operating temperatures continue to increase as airlines
pursue improvements in fuel efficiency. 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.
Timothy R. Armstrong, PhD, Vice President – Research & Product
Commercialization, will lead this new business which will be part of
Carpenter’s Performance Engineered Products segment.
With the addition of the new facility, Carpenter’s Athens Operations is
expected to employ 250 people by 2017.
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 build a
superalloy powder facility and the start of production in late 2015, the
qualification of that facility by Pratt & Whitney, 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.
Source: Carpenter Technology Corporation
Carpenter Technology Corporation
Media Inquiries:
William J.
Rudolph, Jr., 610-208-3892
wrudolph@cartech.com
or
Investor
Inquiries:
Michael A. Hajost, 610-208-3476
mhajost@cartech.com