Under the agreement Sandvik has acquired a 40% share in Carpenter Powder Products AB, located in Torshalla, Sweden and Carpenter has acquired a 40 % share in Sandvik Powdermet AB, located in Surhammar, Sweden. A joint R&D council will also be created. The strategic partnership will not affect any other part of either company’s powder business.

The companies plan to create what they call an “integrated value chain from R&D and powder production, to sales and application development” in near net shape (NNS) manufacturing. It will also enable strategic research and development cooperation in Near Net Shape (NNS) based.

Carpenter Technology will have access to Sandvik Powdermet AB’s manufacturing and sales of powder-based products, which are delivered in the form of near-net-shape products. The companies could also collaborate on new product development in areas such as the energy, offshore, engineering, aerospace and automotive sectors. 

“We are committed to enhancing our market position in powder manufacturing and technology, which we believe will strengthen our portfolio of high-value, differentiated products and provide a vehicle for continued future growth,” says William A. Wulfsohn, president and CEO of Carpenter Technology. “Carpenter believes that collaborations with strong partners such as Sandvik will provide a strong foundation for developing new growth opportunities.”

"Powder technology is one of the development areas to which we have assigned highest priority to enable us to further strengthen our position in the field of advanced materials in, for example, the rapidly expanding energy sector,” says Peter Gossas, President of Sandvik Materials Technology.