Carpenter Technology Corp. reached a multi-level agreement with United Technologies Corp. (UTC), through its Pratt & Whitney Division, that includes licensing technology associated with the production of superalloy powders and a long-term supply agreement. As a result, Carpenter plans to build a superalloy powder facility that 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 the company with superalloy powder for up to 20 years.
In addition, 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 10 years. Carpenter currently supplies UTC’s aerospace businesses with a portion of their overall demand for nickel, stainless and strip laminate products. Global demand for superalloy powder is expected to grow substantially as aircraft engine temperatures increase.