Major Investments by Carpenter Technology for Emerging Technology Center and $100M Soft Magnetics Manufacturing Capability

tony thene_INCarpenter Technology Corporation has announced plans for adding an Emerging Technology Center on its Athens, Alabama campus. Expected to open in about 12 months, the facility will initially focus on additive manufacturing technology development, with future investments slated for soft magnetics and meltless titanium powder.

In March the company announced it will invest $100 million in soft magnetics capabilities and a new, precision strip hot rolling mill in its Reading, Pennsylvania facility to help meet increasing demand for aerospace, consumer electronics and electric vehicle manufacturing customers.

Over time, Carpenter expects to invest $52 million in the new technology center, announced in July. The investment is a critical component in executing the companys key growth initiatives and is aligned with its business strategy of becoming a complete end-to-end solutions provider in additive manufacturing, the company said.

By utilizing our metallurgical and process expertise, the Emerging Technology Center is where we will develop and implement future solutions for our customers ranging from new alloys to revolutionary 3-D printed parts, said Tony R. Thene, Chief Executive Officer. Our recent investments in additive manufacturing and soft magnetics indicate our ongoing commitment to the rapidly changing landscape of our industry.

Within the last 16 months, Carpenter has acquired Puris LLC, a producer of titanium powder for additive manufacturing and advanced technology applications; acquired MB CalRAM LLC, a leader in powder-bed fusion additive manufacturing technologies; announced its soft magnetics investment at Reading; opened an additive manufacturing technology center in Reading; and solidified several additive manufacturing powder supply agreements with various companies to expand its presence in the rapidly expanding market.

Our capabilities in soft magnetic technology for the aerospace and defense end-use market have created a strong platform for growth over the next several years, said Thene in March when the soft-magnetics investment was announced. In addition, the value proposition of our CarTech Hiperco family of soft magnetic alloys provides customers enhanced electronic properties and significant design flexibility to improve performance. This proven capability and product performance also allow us to differentiate ourselves in key consumer electronics applications as well as the rapidly evolving electric vehicle space.

Given these significant market opportunities and the benefits associated with the recently enacted Tax Cuts and Jobs Act, we have decided to accelerate further investment into our business. With more than 90 percent of our products manufactured in the U.S., this type of capital investment will strengthen our foundation for long-term sustainable growth, provide good-paying jobs and increase value for shareholders for years to come. Todays announcement demonstrates the benefits of an effective partnership between public policy and U.S business.

Carpenter estimates the recent legislation will reduce cash taxes by approximately $90-100 million over the next five years and will use the savings to increase its base level of capital investment in U.S. manufacturing operations over the same timeframe. The new mill will increase overall capacity and offer greater flexibility in processing alloys for highly specialized soft magnetics applications.

The 500,000-sq-ft Alabama manufacturing facility, which began operations in 2014, produces high-end specialty alloy products primarily for aerospace and energy markets. The site was later expanded to produce superalloy powders used in applications including jet engine disks, 3-D printed aircraft engine components and other products.

Founded in 1889, Carpenter has evolved to become a pioneer in premium specialty alloys, including titanium, nickel, and cobalt, as well as alloys specifically engineered for additive manufacturing processes and soft magnetics applications.

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