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Carpenter signs multi-level agreement with UTC; will build new facility for superalloy powders

Carpenter Technology Corporation 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.

Press release issued by Carpenter Technology Corporation on October 1, 2013


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Carpenter Technology Corporation Steel, Superalloys, Titanium, Nickel
Pratt & Whitney Large Commercial Engines Turbofan Engines


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