NEW YORK Specialty alloy producer Carpenter Technology Corp. has reached a licensing and supply agreement with United Technologies Corp. (UTC) that will see Carpenter build a $20-million superalloy powder facility, the company said Oct. 1.
The agreement between Wyomissing, Pa.-based Carpenter and UTCs Pratt & Whitney aerospace division includes UTCs licensing of superalloy powder production technology to Carpenter and a long-term supply contract. Upon Carpenters completion of the facility, expected to take approximately 18 months to build at a yet-unspecified location, the company will supply Pratt & Whitney with superalloy powder for up to 20 years.
Carpenter said the agreement also will see Hartford, Conn.-based UTCs aerospace businesses, which include Pratt & Whitney and other divisions, purchase alloy, superalloy and stainless products from the company for 10 years. Carpenter already supplies these businesses with a portion of their overall demand for nickel, stainless and strip laminate products.
The deal will "expand (Carpenters) supply position" and "potentially yield in excess of $600 million in sales over the term of the agreement," Carpenter president and chief executive officer William A. Wulfsohn said in a statement.
The company said it anticipates global demand for superalloy power in the coming years "to grow substantially as aircraft engine temperatures increase."