Carpenter Technology Corp.
) has entered into a multi-level agreement with United
Technologies Corporation (UTC) to supply the latter's Pratt &
Whitney Division with superalloy powders. The market reacted
positively to the news and Carpenter's shares rose as much as
3.3% following the announcement.
Carpenter is planning to build a superalloy powder facility
which is expected to take about 18 months to construct at an
expected cost of $20 million. Carpenter will supply Pratt &
Whitney with superalloy powder for up to 20 years following the
qualification of the facility by the latter.
Moreover, UTC's aerospace business units (Pratt & Whitney,
Pratt & Whitney Canada Corp, UTC Aerospace Systems and
Sikorsky Aircraft Corporation) have agreed to buy alloy steel
bar/billet, nickel superalloy billet, stainless bar/billet, and
strip laminate products from Carpenter for a period of ten years.
Carpenter presently supplies UTC's aerospace businesses with a
part of their overall demand for nickel, stainless and strip
Carpenter expects that the deal will enable a yield over $600
million in sales over the term of the agreement, and should lead
to further increase in sales. The company's entry into the
aerospace market segment reflects its confidence in superalloy
powder demand for additional applications such as those used in
energy and additive manufacturing.
Carpenter, a prominent player in the specialty steel industry
Allegheny Technologies Inc.
Haynes International, Inc.
RTI International Metals, Inc.
), is a leader in the development, manufacture and distribution
of cast/wrought and powder metal stainless steels and specialty
Carpenter's broad product portfolio includes high temperature
(iron-nickel-cobalt base), stainless, superior corrosion
resistant, controlled expansion alloys, ultra high-strength and
implantable alloys, tool and die steels, and other specialty
metals as well as cast/wrought titanium alloys.
Carpenter currently retains a Zacks Rank #3 (Hold).
ALLEGHENY TECH (ATI): Free Stock Analysis
CARPENTER TECH (CRS): Free Stock Analysis
HAYNES INTL INC (HAYN): Free Stock Analysis
RTI INTL METALS (RTI): Free Stock Analysis
To read this article on Zacks.com click here.