Toshiba Tungaloy Licenses CVD Technology to Kennametal

Toshiba Tungaloy (Tokyo, Japan and Itasca, IL) has issued a license to Kennametal, Inc. (Latrobe, PA) to use its Chemical Vapor Deposition (CVD) coating technology in an effort to strengthen an alliance formed in January 1999. That agreement allowed Kennametal to offer the Tungaloy carbide tool product lines through its North American and European sales operations. Tungaloy, in turn, agreed to provide Kennametal with carbide cutting tools and like components. The agreement also paved the way for joint product development, research, private labeling and cross-licensing.

Tungaloy's T7020 CVD composite coating is applied to the company's insert tools to provide improved resistance to fractures and chipping. Tungaloy describes its coating as a TiCN layer with columnar crystal grains that provide wear resistance and toughness. The second part of the coating is a micro-grain A1203 layer that contributes to this insert grade's high-speed cutting technique. The CVD process itself offers improved coating adhesion. It is currently being used on Tungaloy's inserts for turning steels.

The two companies hope that this licensing agreement will be the first in a long line of technical exchanges that will strengthen their partnership, which has not met the expectations set in January 1999. They had targeted a one billion yen number for first-year sales but the actual numbers reached between 100 million yen and 200 million yen.

Kennametal Inc., P.O. Box 231, Latrobe, PA 15650 USA; phone: 800-446-7738

Toshiba Tungaloy America Inc., 1375 East Irving Park Road, Itasca, IL 60143-2300 USA; phone: 800-542-3222