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WYOMISSING, Pa., Oct 20, 2011 (BUSINESS WIRE) --
Carpenter Technology Corporation (NYSE: CRS) has selected Limestone County, Alabama as the location to construct its new 400,000 square foot state-of-the-art manufacturing facility that was announced last August. The facility is being built in response to strong customer demand for premium alloy products primarily in the fast-growing aerospace and energy industries. The new facility will ultimately be capable of producing approximately 27,000 tons per year of additional premium product and will be designed with modern technology and optimum product flow to meet customer requirements for reduced lead times.
The approximately 230-acre site is located near Athens, Alabama in the Huntsville Metropolitan Statistical Area. The flat, open tract of land is in an area that will allow relatively easy construction, flexibility for future growth and expansion, and access to a strong pool of skilled workers.
"The site selection process began with about 250 worldwide locations, and we narrowed it down to a dozen, including two Pennsylvania locations," said William A. Wulfsohn, President & CEO. "After further analyzing state, county and local incentives, utility costs, and labor resources, we felt Limestone County provided the best opportunity for us to expand our core business. The state of Alabama and local government entities put together a very compelling package including various tax initiatives, infrastructure grants, and training programs."
Carpenter's core business will be strengthened with increased premium capacity to support expanded long-term customer agreements. This initiative also enables Carpenter to support the increased demand related to the Latrobe (pending), Amega West, and Oilfield Alloys acquisitions. Finally, this expansion will support increased demand expected from the sales of new technologies which are planned to be commercialized over the coming years.
The facility is expected to be operational in about 30 months, and has a total cost of approximately $500 million including remelting, forging, and associated finishing and testing capabilities.
The acquisition of the new Alabama site is subject to various closing conditions.
About Carpenter Technology
Carpenter Technology produces and distributes conventional and powder metal specialty alloys, including stainless steels, titanium alloys, tool steels and superalloys. Information about Carpenter can be found at www.cartech.com.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the year ended June 30, 2010 and the quarterly reports on Form 10-Q for the quarters ended September 30, 2010, December 31, 2010 and March 31, 2011 and the exhibits attached to those filings. They include but are not limited to: 1) the cyclical nature of the specialty materials business and certain end-use markets, including aerospace, industrial, automotive, consumer, medical, and energy, or other influences on Carpenter's business such as new competitors, the consolidation of competitors, customers, and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; 2) the ability of Carpenter to achieve cost savings, productivity improvements or process changes; 3) the ability to recoup increases in the cost of energy, raw materials, freight or other factors; 4) domestic and foreign excess manufacturing capacity for certain metals; 5) fluctuations in currency exchange rates; 6) the degree of success of government trade actions; 7) the valuation of the assets and liabilities in Carpenter's pension trusts and the accounting for pension plans; 8) possible labor disputes or work stoppages; 9) the potential that our customers may substitute alternate materials or adopt different manufacturing practices that replace or limit the suitability of our products; 10) the ability to successfully acquire and integrate acquisitions; 11) the availability of credit facilities to Carpenter, its customers or other members of the supply chain; 12) the ability to obtain energy or raw materials, especially from suppliers located in countries that may be subject to unstable political or economic conditions; 13) our manufacturing processes are dependent upon highly specialized equipment located primarily in one facility in Reading, Pennsylvania for which there may be limited alternatives if there are significant equipment failures or catastrophic event; 14) our future success depends on the continued service and availability of key personnel, including members of our executive management team, management, metallurgists and other skilled personnel and the loss of these key personnel could affect our ability to perform until suitable replacements are found; 15) the capability of the new facility of producingapproximately 27,000 tons per year of additional premium product and of producing optimum product flow to meet customer requirements for reduced lead times; 16) the ability to strengthen the core business with increased premium capacity to support expanded long-term customer agreements; 17) the expectation that this investment will also enable Carpenter to support the increased demand related to acquisitions; 18) this expansion will support increased demand expected from the sales of new technologies we plan to commercialize over the coming years; 19) the approximate cost of $500 million for the new facility; and 20) the expectation that the facility will be operational in approximately 30 months. Any of these factors could have an adverse and/or fluctuating effect on Carpenter's results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Carpenter undertakes no obligation to update or revise any forward-looking statements.
SOURCE: Carpenter Technology Corporation
Carpenter Technology Corporation
William J. Rudolph, Jr.
Michael A. Hajost