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Carpenter Technology Corporation (NYSE:CRS) announced it will invest $100 million in soft magnetics capabilities

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Update time : 2018-03-30 09:55:08

PHILADELPHIA, March 26, 2018 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE:CRS) today announced it will invest $100 million in soft magnetics capabilities and a new, precision strip hot rolling mill in its Reading, PA facility to help meet increasing demand for aerospace, consumer electronics and electric vehicle manufacturing customers.

“Carpenter’s industry leading capabilities in the field of soft magnetic technology for the Aerospace and Defense end-use market has created a strong platform for growth over the next several years. In addition, the value proposition of our CarTech Hiperco® family of soft magnetic alloys provides customers enhanced electronic properties and significant design flexibility to improve performance,” said Tony Thene, Carpenter Technology President and CEO. “This proven capability and product performance also allows us to differentiate ourselves in key consumer electronics applications as well as the rapidly evolving electric vehicle space.”

“Given these significant market opportunities and the benefits associated with the recently enacted Tax Cuts and Jobs Act, we have decided to accelerate further investment into our business. With more than 90 percent of our products manufactured in the U.S., this type of capital investment will strengthen our foundation for long-term sustainable growth, provide good-paying jobs and increase value for shareholders for years to come. Today’s announcement demonstrates the benefits of an effective partnership between public policy and U.S business.”

U.S. Senator Pat Toomey (R-PA) joined Carpenter President and CEO Tony Thene in making today’s announcement.

“This is exactly the type of capital investment we envisioned as a direct benefit of the Tax Cuts and Jobs Act,” said Senator Toomey. “It’s vitally important for Pennsylvania families that local companies increase their operations at home and provide high-paying jobs with a stable future. I’m pleased Carpenter is making such a strong commitment to Pennsylvania.”

Carpenter estimates the recent legislation will reduce cash taxes by approximately $90-$100 million over the next five years and will use the savings to increase its base level of capital investment in U.S. manufacturing operations over the same timeframe. The new mill announced today will increase overall capacity and offer greater flexibility in processing alloys for highly specialized soft magnetics applications in the aerospace, consumer electronics and electric vehicle markets. Soft magnetics are materials that can be easily magnetized and de-magnetized and are indispensable in modern electrical engineering and electronics applications. Sophisticated equipment, special processes, and highly controlled atmospheric conditions are required to produce soft magnetic alloys to meet extremely stringent specifications.