(By Balachander) Carpenter Technology Corp. (NYSE: CRS) and Sandvik Materials Technology said they will dissolve their two-year old joint ventures and the companies reached a supply agreement with respect to their powder metal businesses.
Wyomissing, Pennsylvania-based Carpenter Technology bought a 40 percent interest in Sandvik Powdermet AB, Sweden, while Sandvik AB acquired a 40 percent interest in Sweden-based Carpenter Powder Products (CPP) AB in October 2010.
The joint ventures will be fully dissolved by the end of the calendar year, the companies said.
The companies have agreed that the growth of their respective powder metal businesses would be better served in the form of a supply agreement, by which Carpenter will supply Sandvik.
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Carpenter Technology is engaged in the production and distribution of specialty alloys, including stainless steels, titanium alloys and superalloys, and various engineered products.
Sandvik develops and manufactures products in advanced stainless steels, special alloys and systems for industrial heating.
CRS shares traded 1.74 percent lower to trade at $45.40 on Tuesday.