Oct 19 2010
Sandvik Materials Technology has decided to establish a strategic partnership with Carpenter Technology Corporation to further strengthen its position in the field of powder technology and advanced materials. As part of the arrangement, Sandvik AB will acquire 40% of the shares in Carpenter Powder Products AB and Carpenter Technology Corporation will acquire 40% of the shares in Sandvik Powdermet AB.
Carpenter Powder Products AB manufactures high-alloy powder and is already one of Sandvik Powdermet AB's suppliers. The joint venture will safeguard Sandvik's supply of powder and Carpenter Technology will gain access to Sandvik Powdermet AB's manufacturing and sales of powder-based products, which are delivered in the form of near-net-shape products. The strategic partnership also provides the opportunity for product development collaboration. The two companies will continue to operate under their current respective brands, Sandvik and Carpenter.
"Powder technology is one of the development areas to which we have assigned highest priority to enable us to further strengthen our position in the field of advanced materials in, for example, the rapidly expanding energy sector. The strategic partnership with Carpenter Technology makes us a leading player in the field of powder technology," says Peter Gossas, President of the Sandvik Materials Technology business area.
"We are committed to enhancing our market position in powder manufacturing and technology, which will strengthen our portfolio of high-value, differentiated products and provide a vehicle for continued future growth. The partnership with Sandvik will further establish us as a leading global supplier of technologically advanced materials required by the energy and other demanding market sectors," says William A. Wulfsohn, President and Chief Executive Officer of Carpenter Technology.
Sandvik Materials Technology also has powder technology operations in Sandvik Osprey Ltd in Wales, powder manufacturing in Surahammar, Sweden and a powder technology R&D unit in Sandviken, Sweden. Carpenter Technology Corporation has additional powder manufacturing operations in the US: in Bridgeville, PA, and Woonsocket, RI, as well as powder R&D in Reading, PA. These units will not be included in the joint venture.