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.