December 04, 2008

TIMET and Carpenter Technology enter agreement

Titanium Metals Corp and Carpenter Technology Corp announced a joint agreement under which TIMET will supply Carpenter with titanium metal and scrap melting services and Carpenter will provide specialized titanium conversion processing to TIMET.

Under the supply agreement, TIMET will supply Carpenter with titanium specialized titanium conversion processing to TIMET. Metal and toll melting services for Carpenter's titanium scrap at agreed upon prices for a minimum of 12 years and a maximum of 20 years. Under terms of the processing agreement covering the same period, Carpenter will provide TIMET with forging and related processing services at agreed upon prices for TIMET's titanium products. Financial terms of the two agreements were not disclosed.
Mr Steven Watson vice chairman & CEO of TIMET said that "We are very pleased to expand our relationship with Carpenter by entering into these mutually beneficial agreements. TIMET will gain access to significant forging capacity that will allow us to continue to serve the expanding needs of our customers under long-term agreements. These strategic agreements further demonstrate TIMET's commitment to achieve profitable growth for our shareholders by adding production capacity in a cost efficient manner and leveraging our position as a leading producer of titanium mill and melted products."

Mr Anne Stevens chairman & CEO of Carpenter said that "These agreements provide considerable benefits to both companies and to our customers. We are excited about the opportunity to work jointly with TIMET which is one of the premier companies within the titanium industry."