Carpenter Technology to Invest $100 Million in Pennsylvania Mill
By Metal Center News Staff
on Mar 29, 2018
Carpenter Technology Corp. announced in March that it will invest $100 million in its Reading, Pa., facility. Planned upgrades include soft magnetics capabilities and a new precision strip hot rolling mill.
The company said the investment will 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,” said Tony Thene, president and CEO of Carpenter Technology.
Thene added that the investment underscores the benefits of partnerships between public policy and U.S business.
“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,” he said. “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.”
U.S. Sen. Pat Toomey said Carpenter Technology is setting an example for the type of capital investment he expected from the Tax Cuts and Jobs Act. “It’s vitally important for Pennsylvania families that local companies increase their operations at home and provide high-paying jobs with a stable future,” Toomey said. “I’m pleased Carpenter is making such a strong commitment to Pennsylvania.”
The company estimates that the recent legislation will reduce cash taxes by approximately $90-$100 million over the next five years, adding that it will use those savings to increase its base level of capital investment in its U.S. manufacturing operations over the same timeframe.
Additionally, the company said the new mill 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.