Kennametal is also expanding its tungsten-cobalt blended powder operations at its existing facility in Tianjin, China, to serve the Asia-Pacific region.
Both projects will focus on diversifying Kennametal’s tungsten sourcing to balance supplies, costs and access to raw materials, while improving sustainability and growth. By adding tungsten-cobalt blended powder capacity in Tianjin, which is close to China’s source mines, Kennametal expects to streamline customer service in that region while reducing export delays and duties on the material. Initial capital plans for these projects are included in its full year 2013 forecast.
Kennametal is also launching preliminary work to establish an advanced carbide recycling facility in the United States, where it will reclaim material from scrap and consumed products, such as metal-cutting inserts, and reuse it for new production. “We’re talking about a high-tech operation where we’ll process used materials to develop new compounds essential to our industrial technology,” said Carlos Cardoso, Kennametal chairman, president and CEO. “This is an exciting first for our company, demonstrating our commitment to invest in sustainability and advanced technology strengthening our leadership in America, and our service to customers around the world.”