Sandvik Materials Technology has decided to establish a strategic partnership with Carpenter Technology Corporation to further strengthen its position in the field of powder technology and advanced materials. As part of the arrangement, Sandvik AB will acquire 40 per cent of the shares in Carpenter Powder Products AB and Carpenter Technology Corporation will acquire 40 per cent of the shares in Sandvik Powdermet AB. Carpenter Powder Products AB manufactures high-alloy powder and is already one of Sandvik Powdermet AB's suppliers. The joint venture will safeguard Sandvik's supply of powder and Carpenter Technology will gain 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 strategic partnership also provides the opportunity for product development collaboration. The two companies will continue to operate under their current respective brands, Sandvik and Carpenter. "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.