10-Year Supply Agreement Also Reached with Aerospace Business Units
WYOMISSING, Pa.--(BUSINESS WIRE)--Oct. 1, 2013--
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.
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