NEW YORK Specialty metals and stainless producer Carpenter Technology Corp. and Sandvik Materials Technology, a subsidiary of Swedish industrial conglomerate Sandvik AB, will dissolve their Swedish powder metal joint ventures by the end of the year.
The two companies have agreed that the growth of their respective powder metal businesses would be better served in the form of a supply agreement, by which Carpenter will supply Sandvik, Carpenter said in a statement announcing the end of the joint ventures.
Joint development activities in near-net-shape powder products will continue under the new structure, Carpenter said.
The Wyomissing, Pa.-based company did not respond to a request seeking further details on the new arrangement.
The joint ventures were established in October 2010 when Carpenter acquired a 40-percent interest in Surahammar-based Sandvik Powdermet AB and Sandvik acquired a 40-percent interest in Torshälla-based Carpenter Powder Products AB (CPP).
CPP is a diversified manufacturer of high-alloy metal powder products, focusing primarily on energy and industrial markets, while Sandvik Powdermet specializes in the development, manufacturing, sales and marketing of powder-based products delivered in the form of near-net shapes, the companies said in 2010. At the time of the original agreement, CPP was one of Sandviks main suppliers of high-alloy powder, the companies said.
Carpenter announced a $30-million expansion of CPP in September last year (amm.com, Sept. 14