Kennametal Inc., a specialty metals manufacturing firm headquartered in Latrobe, Pa., has signed a definitive agreement to acquire the Allegheny Technology Inc.’s (ATI) Tungsten Materials Business for $605 million. ATI’s Tungsten Materials Business is a producer of tungsten metallurgical powders, as well as tooling technologies and components. The business has approximately 1,175 employees across 14 operating facilities globally and consists of two divisions: ATI Firth Sterling and ATI Stellram. The transaction has been approved by both companies’ boards of directors and is expected to close before the end of the calendar year, subject to customary regulatory approvals and closing conditions. ATI is based in Pittsburgh.

“ATI’s Tungsten Materials Business brings vital strategic assets that are an excellent complement to Kennametal, especially given our common focus on operational excellence and industry-leading material science,” says Carolos Cardoso, Kennametal’s chairman, president and CEO. “The addition of the expanded material and tooling technologies of ATI’s Tungsten Materials Business will enable us to offer more to our customers around the world.  We look forward to building on our respective strengths to accelerate growth while generating even greater value for our business and ultimately our shareholders.”

This acquisition is aligned with Kennametal’s growth strategy and positions the company to further diversify its portfolio. The company expects to capitalize on the material technology capabilities, engineered components and world-class tooling products of ATI’s Tungsten Materials Business to expand its presence in the aerospace and energy markets.  

According to a Kennametal press release, the acquisition will advance the company’s core strategy of diversifying the company’s tungsten sourcing to balance supplies, costs and access to raw materials, including those produced from recycled products. The ability of ATI’s Tungsten Materials Business to produce critical materials from recovered tooling and scrap will enhance Kennametal's material sourcing and development capabilities to support its growth initiatives.

The company also notes that the acquisition will accelerate its previously announced plans to expand capacity and develop an advanced tungsten carbide recycling facility in the United States to serve global markets. The company also estimates that this will reduce planned capital expenditures by $30 million to 35 million and expects to achieve economy of scale six to eight years earlier than prior projections.


Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com

Hughes Pumps has recently supplied a custom designed, automatic high- pressure tank cleaning system to Sandvik Hard Materials for use at their Coventry Cemented Carbide production facility.

Rigorous control is necessary throughout the Cemented Carbide manufacturing process since the quality of the final product can be greatly affected by seemingly insignificant factors. During manufacture the carbide slurry is dried by spray drying to a powder form. Afterwards the spray dryer vessel must be thoroughly cleaned to remove any remaining deposits and prevent contamination between batches of different material grades. Initially production personnel carried out this function, being lowering into the vessel to use hand held cleaning lances, which proved to be both time consuming and potentially unsafe.

The Hughes turnkey system solution comprises a high pressure pumpset, high pressure stainless steel ring main, with an automatic three dimensional cleaning head that is raised and lowered into the vessel via a high pressure hose and pneumatic hose reel. The tank cleaning head rotates in two planes by the reaction of the water jets to bring about total cleaning coverage of the complete vessel in 30-60 minutes depending on the degree of deposits present.

The cleaning process, which is now totally automated, has proved to be very cost-effective. The complete surface of the vessel is cleaned during the cycle, which has eliminated the possibility of contamination between batches, greatly improving product quality.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

BHI had in the meantime added a number of other leading cemented carbide producers to the IMC stable: notably Ingersoll (USA), Metaldur (Switzerland), Microtools (Israel), Outiltec (France), UOP Spa (Italy), TaeguTec (Korea) and Tungaloy (Japan). Today the IMC group has over 10,000 employees in 140 subsidiaries in 61 countries.
In May 2013 Berkshire Hathaway purchased the remaining 20% shareholding in Iscar for a quoted $2.05 billion giving the Israeli company a total valuation of around $10 billion. "Since the time IMC entered our lives, my partner Charlie Munger and I have enjoyed Berkshire's association with the company, the Wertheimer family and the company's management team," stated Buffett at BHI headquarters in Omaha, Nebraska.
"As you can surmise from the price we're paying for the remaining interest, IMC has enjoyed very significant growth over the last seven years, and we are delighted to acquire the portion of the company that was retained by the Wertheimer family when IMC first became a member of the Berkshire group of companies.

We look forward to continuing our stewardship of this unique company founded by the Wertheimer family in Israel 60 years ago and nurtured into a truly global enterprise," Buffett said in the statement.

Eitan Wertheimer stated, "We are very pleased that IMC has found a permanent home in Berkshire Hathaway, which fully appreciates the unique nature of the global Israeli enterprise that we have created and that is committed to remaining true to that heritage in every way, building on and continuing our historic success and special culture. The growth experienced by IMC since the 2006 Berkshire transaction validates the faith that Warren [Buffett] and Charlie [Munger] showed in our business and the special people in Tefen, Israel and around the world who have made our success possible."

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

 

Warren Buffett’s Berkshire Hathaway Inc. (BHI) reported net earnings attributable to Berkshire shareholders of $9.433 billion in the first half of 2013, a 48% increase compared with the same period last year. BHI owns a number of diverse businesses including insurance, freight rail transportation, utilities and energy, finance, services and retailing, and manufacturing. The manufacturing arm of the company includes IMC International Metalworking Companies (Iscar), an industry leader in the field of cemented carbide (hardmetal) metal cutting tools. BHI chairman is billionaire Warren E Buffet with Charles T Munger acting as vice-chairman.
Investment in the cemented carbide sector

Warren Buffett made the decision to invest in the metal cutting tool sector seven years ago when BHI bought 80% of IMC (Iscar) for around $5 billion from the Wertheimer family which founded the business in Israel 60 years ago. It was the first acquisition by BHI outside of the United States. The Israeli carbide producer based in Tefen, northern Israel, soon made positive contributions to BHI financial results. Although IMC is not obliged to make public its financial results, it is estimated to have achieved sales of more than $3 billion in 2011 with profits close to $1 billion, more than twice what they were in 2005.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

 

Five Star Tool, has built a reputation for making exceptional custom CNC carbide cutting tools and is now saving manufacturing companies thousands by re-sharpening their used carbide cutting tools. Utilizing cutting edge software and carbide coatings, Five Star Tool is now able to increase the life expectancy of standard tungsten carbide cutting tools by 5 times over the original manufacturer recommendations. This Five Star Tool’s Edgemaster resharpening program is designed to provide CNC manufacturing companies an “Edge” over their competition.

Traditional CNC manufacturing companies typically dispose of used worn out carbide cutting tools costing them hundreds of dollars to replace. The innovative recycling process is designed to handle all types of cutting tools including Profile Cutters - Ball End Mills - Carbide End Mills - Variable Lead/Helix End Mills Center Drills – Centers - Corner Rounding End Mills – Counterbores - Countersinks Key Cutters - Milling Centers - Taper Shank Drills - Roughing End Mills - Saws Carbide/HSS - Spade Blades - Spade Drills - Spot Drills - Step Drills - Taper Ball End Mills - Taper End Mills - H.S.S. End Mills Crest Cut End Mills. Recycling these used cutting tools is now helping manufacturing companies save over 60% in their manufacturing process.

Once the carbide cutting tools arrive to the Rochester, NY recycling center they are sorted, processed and labeled. They are then returned to the customer in specially designed foam containers after passing a carefully inspection. Remarkably, this complete process is guaranteed to be completed within 10 days from arrival.

Five Star Tool is a privately-held, certified leader distributing solid carbide cutting tools throughout the United State for the aerospace, medical, and automotive industries. For more information or to get in touch with a representative, contact Five Star Tool at (585) 328-9580 or visit the company website at http://www.fivestartool.com to learn more.


Tungsten Carbide Manufacturer & Supplier: Chinatungsten Online - http://www.tungsten-carbide.com.cn
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com

The new material possesses excellent bullet-proofing qualities, and ballistic tests has proved its unequalled ability to stop armour-piercing bullets, according to Exote.

Exote says that the new material is as ecological alternative as WC-Co tungsten carbide, which contains tungsten carbide and cobalt, both of which are defined by the EU as critical.

The material withstands high temperatures and has high-level strength and durability, Exote claims. The metal is ideal for the manufacture of crusher blades and shear cutters, as well as exacting product tools. In ballistic protection it can be used for both personal and vehicle protection.

VTT and Exote Ltd have carried out further development on the material Exote has in production through the use of nano additives, which enable changing its toughness and hardness according to intended use.


Tungsten Carbide Manufacturer & Supplier: Chinatungsten Online - http://www.tungsten-carbide.com.cn
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com

Allegheny Technologies Incorporated (NYS: ATI) announced today that it has reached an agreement to sell its tungsten materials business to Kennametal Inc. (NYS: KMT) for $605 million. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed during the fourth quarter 2013. As a result of this agreement, ATI will report the financial results of the tungsten materials business in discontinued operations pending completion of the transaction.

The tungsten materials business, called ATI Tungsten Materials, is part of ATI's Engineered Products segment. ATI's tungsten materials business has approximately 1,175 employees and produces tungsten powder, tungsten heavy alloys, tungsten carbide materials, and carbide cutting tools. For the year ended December 31, 2012, ATI's tungsten materials business generated total net revenue of $338.6 million, operating profit of $37.2 million, and EBITDA of $45.3 million.


Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com

Kennametal Inc said it would buy Allegheny Technologies Inc's tungsten materials business for $605 million to boost supply of the raw material used to make its metal-working tools, increasing its exposure to aerospace and energy markets.

Allegheny's tungsten material business, ATI Tungsten Materials, makes tungsten powder, tungsten heavy alloys, tungsten carbide materials and carbide-cutting tools.

"It is a very core strategic deal for (Kennametal) that enhances its tungsten recycling capability," Longbow Research analyst Eli Lustgarten told Reuters.

Kennametal said the acquired business, which recovers tungsten from scrap, would boost raw material sourcing and accelerate plans to develop an advanced tungsten carbide recycling facility in the United States.

"We expect this acquisition to reduce our raw material costs while securing our supply of tungsten," Chief Financial Officer Frank Simpkins said on a conference call with analysts.

Kennametal's metal-cutting tools, tooling supplies and other products are used for making products such as airframes, and in mining operations and oil wells.

The deal with Allegheny also aligns with Kennametal's acquisition of Comercializadora Emura S.R.L. that closed in August, the company said.

La Paz, Bolivia-based Emura processes and sells tungsten ore material.

Kennametal's shares were up 1.2 percent at $46.54 in afternoon trading on the New York Stock Exchange, while those of Allegheny Technologies were up nearly 9 percent at $31.12.

Allegheny said the sale would help it concentrate on its high-performance metals and flat-rolled products businesses.

Kennametal said the acquisition would also strengthen its tooling business in the areas of metal cutting and metal finishing technologies, adding brands such as Stellram Products and Garryson Products.

The company said it expects the acquisition to reduce planned capital expenditure by about $30 million-$35 million.

Kennametal said it plans to fund the acquisition through a combination of cash and credit. The deal is expected to be neutral to earnings for fiscal 2014 ending June.

"The acquisition will be accretive to earnings per share within a year," Chief Executive Carlos Cardoso said on the call.

J.P. Morgan Securities LLC advised Kennametal. Goldman, Sachs & Co was the financial adviser to Allegheny, while K&L Gates LLP was the legal counsel.


Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 20, 2013) - Blackheath Resources Inc. (TSX VENTURE:BHR)(FRANKFURT:04B) ("Blackheath) is pleased to announce that the Government of Portugal has granted an Experimental Mining Licence ("Licence") for the Covas Tungsten Project in northern Portugal. The Licence is valid for a period of three years, which may be extended by a further two years, and is held by Blackheath under an option from Avrupa Minerals Ltd. Under the terms of the Licence, which replaces the previous exploration licence, Blackheath may carry out test mining programmes as well as further drilling and metallurgical work at Covas.

The Licence covers an area of approximately 1,948 hectares and has been granted for the exploitation of mineral deposits of tungsten, tin and gold. Granting of the Licence follows the established practice under Portuguese mining law and may be followed, if warranted, by the grant of a full licence for full-scale commercial exploitation of mineral deposits on the property.

"We are delighted that the Experimental Mining Licence has been granted at Covas and we will now be able to proceed with the next phase of our work programme," said James Robertson, P. Eng., President and CEO of Blackheath. "We plan to complete trenching and other surface work in preparation for starting our next round of diamond drilling at Covas, as well as at our contiguous tungsten permit at Arga, in September."

Covas is a past-producing tungsten mine and remaining historic resources on the property have been estimated at 922,900 tonnes of 0.78% WO(3) (tungsten trioxide) by Union Carbide in 1980, based on work including 329 drill holes on the property. Mineralization is open to expansion. The price of tungsten has increased significantly in recent years and is currently approximately $42 per kilogram of contained tungsten trioxide. (These resources are historic in nature, prepared by Union Carbide Corp. in 1980 and are considered relevant. However, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources and the Company is not considering the historical estimates as current mineral resources.)

Highlights from the Phase 1 program completed by the Company early in 2013 included high grade tungsten mineralization of 2.11% WO(3) over 7.98 metres starting at a depth of 44.57 metres in Hole CO 7/12 at the Telheira target and 2.89% WO(3) over 5.10 metres in Hole CO 13/12 starting at a depth of 52.70 metres at the Lapa Grande target at Covas, as previously reported. Other results from the program confirmed extensions of tungsten mineralization in the skarn zones at Covas. (See news releases dated November 26, 2012 and March 1, 2013 for details)

The Covas property is located about 100 kilometres north of Porto, Portugal's second largest city. Blackheath holds the property under an option from Avrupa Minerals Ltd. to earn up to an 85% interest in a joint venture in the project, after incurring minimum exploration expenditures of EUR1 million in two stages to earn a 70% interest followed by completion of a prefeasibility study to earn the additional 15% interest. Blackheath also holds options for a 100% interest in the past-producing Borralha tungsten mine and the Bejanca tungsten-tin mine where exploration is also underway.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

Yesterday, the Ministry of Land and Resources issued the announcement about tungsten concentrate output limitation in 2013. In 2013, the tungsten concentrate output limitation is 890,000 tons. The Ministry of Land and Resources will keep the output control in 2012 and continue imposing control on total of comprehensive utilization. On December 31, 2013, the general office of the Ministry of Land and Resources issued the first of tungsten concentrate output limitation, based on 50% of output limitation in 2012. 2,000 tons of tungsten concentrate was not distributed. Tungsten concentrate output limitation which has been sent to every province and autonomous region is increased by 2,000 tons, compared with 2012. Total of primary mining is 71,000 tons and total of comprehensive utilization is 18,000 tons, increased by 1,600 tons and 400 tons respectively.

Tungsten concentrate output limitation for Jiangxi is 37,750 tons, increased by 650 tons; for Hunan is 23,100 tons, increased by 500 tons; for Yunnan is 6,000 tons, increased by 500 tons; for Guangdong is 3,260 tons, increased by 110 tons; for Zhejiang is 450 tons, increased by 100 tons; for Heilongjiang is 1100 tons, increased by 100 tons; for Xinjiang is 300 tons, increased by 100 tons; for Hubei is 300 tons, increased by 50 tons.

Tungsten concentrate output limitation for Guangxi is 3,000 tons, decreased by 110 tons.

Tungsten concentrate output limitation for Fujian is 2900 tons; for Inner Mongolia is 1,500 tons; for Qinghai is 140 tons; for Henan is 6,000 tons; for Gansu is 1,710 tons; for Hainan is 190 tons and for Shanxi is 100 tons. The output limitation for those provinces or autonomous regions is the same as last year.

The announcement requires to stopping accepting application on prospecting and mining for new rare earth or tungsten concentrate. The new set-up rare earth and tungsten concentrate must conform to output limitation and requirements for capacity balance. Compared with 2012, the fifth situation is set up: the program which is in accordance with industrial policy, mineral resources development program, configuration scheme of mining right, output limitation and requirements of provincial government should be given key support.

The announcement also stresses that the Ministry of Land and Resources will decompose the tungsten concentrate output limitation which has been sent to every local competent department of land and resources. The Ministry of Land and Resources will also inspect monthly reports or quarterly reports and check the implementation accordingly.   



Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten Picture Center: http://picture.chinatungsten.com
Tungsten Video Center: http://v.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com