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Carpenter Enters Aerospace Superalloy Powder Market
Carpenter Technology Corporation (NYSE:CRS) remains confident that operations will begin soon at its new superalloy powder facility in Alabama as part of a multi-level agreement with United Technologies Corporation's (UTC) Pratt & Whitney Division. The agreement with UTC was signed in October 2013, and includes Carpenter supplying Pratt & Whitney with superalloy powder for up to 20 years once qualifications are satisfied.
Gregory A. Pratt, Carpenter's chairman, president and chief executive officer stated: "We're extremely excited to produce an aerospace superalloy powder with demand volumes directly linked to the move by engine manufacturers to develop better fuel-efficient engines. Carpenter is also optimistic that demand for superalloy powder will begin to grow in other key markets we serve."
As part of the agreement, UTC's aerospace business units (Pratt & Whitney, Pratt & Whitney Canada, UTC Aerospace Systems and Sikorsky Aircraft Corporation) have agreed to purchase alloy steel bar/billet, nickel superalloy powder, 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.
"At Pratt & Whitney, we are building production readiness by investing in our global network of facilities and suppliers. We select suppliers such as Carpenter based on their commitment to meeting our performance requirements and investing in capacity," said Sergio Loureiro, vice president, Global Supply Chain, Pratt & Whitney. "There are tremendous growth opportunities for our suppliers as we increase capacity across Pratt & Whitney and UTC. Long-term agreements allow our suppliers to make investments in their facilities and talent."
Carpenter's aerospace capabilities will be on display at the International Paris Air Show (Hall 5, Booth E-232) beginning Monday, June 15.