Carpenter Technology and Sandvik Materials Technology have formed a strategic partnership that mutually reinforces each company's long term commitment in powder technology.
The JVs included in the strategic partnership will result in the creation of an integrated value chain from R&D and powder production, to sales and application development for Near Net Shape solutions. It will also enable strategic research and development cooperation in Near Net Shape based powder technology solutions.
The opportunities for knowledge sharing within the strategic partnership, combined with R&D efforts more focused on each company's part within the value chain, will be instrumental in developing products better suited for the increasingly challenging environments and conditions facing customers in the future.
Mr William A Wulfsohn president & CEO of Carpenter Technology said that "We are committed to enhancing our market position in powder manufacturing and technology, which we believe will strengthen our portfolio of high value, differentiated products and provide a vehicle for continued future growth. We believe this partnership will further establish us as a leading global supplier of technologically advanced materials required by the energy and other demanding market sectors. Carpenter believes that collaborations with strong partners such as Sandvik will provide a strong foundation for developing new growth opportunities."
Mr Peter Gossas president of Sandvik Materials Technology said that "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. This strategic partnership with Carpenter will further strengthen our joint positions in advanced materials, making us a leading player in powder technology."
Under the agreement, Sandvik has acquired a 40% share in Carpenter Powder Products AB, located in Torshalla, Sweden and in turn Carpenter has acquired a 40 % share in Sandvik Powdermet AB, located in Surhammar, Sweden. A joint R&D council will also be created to co ordinate the R&D efforts within powder-based NNS solutions of both companies.
The strategic partnership 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.
Research and development plays a significant role in metal powder technology and both Carpenter’s and Sandvik’s research scientists and metallurgists will work closely with customers on the development of new and modified materials. This is essential in the Near Net Shape process as Hot Isostatic Pressing allows greater design freedom for the production of large, complex components.
As a result of the strategic partnership the focused R&D effort will accelerate product development particularly in areas such as the energy, offshore, engineering, aerospace and automotive sectors. Development of this technology utilizing combined Carpenter and Sandvik research will provide optimization of both companies’ extensive knowledge and capabilities in the field of powder technology.
Structured as a cross ownership, the strategic partnership will not affect any other part of either company’s powder business, nor any other business, while both companies will continue to operate under their respective brands.
Carpenter Technology has also additional powder manufacturing operations in Bridgeville, PA and Woonsocket, RI, and powder R&D in Reading, PA.
Sandvik Materials Technology also has extensive powder technology operations in the UK with Sandvik Osprey Ltd, a producer of fine metal powder, and in Sweden with powder manufacture in Surahammar and an R&D facility in Sandviken. These units will not be included in the JV.
