Carpenter Technology reports that it has idled two powder metal (PM) production facilities in the US in order to mitigate the impact of Covid-19.
The company has also approved actions to exit its downstream oil and gas (Amega West) business, and as a result of the decisions to close these facilities, it expects to save US$15 million to US$20 million annually based on current run rates.
According to Carpenter, Covid-19 related disruptions negatively impacted operating income results by approximately US$5.5 million in the third quarter of fiscal year 2020. ‘This impact is principally associated with disruption in the ability to ship certain materials late in the quarter as additional safety measures were implemented across the company’s facilities as well as certain customers who were unable to accept deliveries due to shutdowns,’ it said.
The company has also reportedly implemented temporary furloughs for certain production and maintenance employees across facilities based on planned production scheduling, implemented a global hiring freeze and reducing planned capital expenditures for fiscal year 2021 by approximately 25-30% from fiscal year 2020.
This story uses material from Carpenter, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.