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Carpenter to Build New Premium Products Facility
08/26/2011 - Carpenter Technology announced plans to construct a new state-of-the-art manufacturing facility capable of producing approximately 27,000 additional tons per year. The new facility is to include remelting, forge, and associated finishing and testing capabilities.
Carpenter Technology Corp. announced plans to construct a new state-of-the-art manufacturing facility that will ultimately be capable of producing approximately 27,000 tons per year of additional premium product. The new facility is to include remelting, forge, and associated finishing and testing capabilities.
The company said the decision to build the new facility was made in response to strong customer demand for premium products, primarily in the fast-growing aerospace and energy industries. The new facility also supports Carpenter's ongoing commitment to expand capacity, reduce lead times, and improve customer service.
"Earlier this year, we outlined a corporate strategy centered on optimizing our core business, accelerating growth with acquisitions, and investing in technology and capacity," said William A. Wulfsohn, President & CEO. "Our new facility will play a key supporting role in each of these areas.
“The core business will be strengthened with increased premium capacity to support expanded long-term customer agreements and with more efficient operations utilizing advanced technology,” continued Wulfsohn. “This investment will also enable Carpenter to support the increased demand related to the Latrobe (pending), Amega West, and Oilfield Alloys acquisitions. Finally, this expansion will support increased demand expected from the sales of new technologies we plan to commercialize over the coming years."
The 400,000-square-foot facility is to be built on one of several 200+ acre greenfield sites currently under consideration and will cost approximately $500 million.
The project will be financed over a multi-year period. Guidance provided by the Company for fiscal 2012 capital spending of about $200 million remains unchanged. Much of the funding for this project in future years will come from operating cash flow.
David L. Strobel, Senior Vice President - Global Operations, sees this initiative as Carpenter's next step in advancing the company's leadership in the production of premium alloys. "The new facility will play a key role in further developing our capabilities in the production of our premium products, primarily serving the aerospace and energy markets. This facility will deploy the latest technology, and coupled with our strong experience and know-how, will serve both Carpenter and our customers well into the future. We are excited to build this into our strong list of capabilities."
The new facility is expected to be operational in approximately 30 months.
Carpenter Technology produces and distributes conventional and powder metal specialty alloys, including stainless steels, titanium alloys, tool steels and superalloys.
