Keystone Powdered Metal Company and Engineered Sintered Components to merge

March 16, 2022

Keystone has been responsible for many product innovations over its history, including this powder forged helical pinion gear (Courtesy KPMC)

Keystone Powdered Metal Company (KPMC), St Marys, Pennsylvania, USA, and Engineered Sintered Components Company (ESC), Troutman, North Carolina, both affiliates of Sumitomo Electric Industries (SEI), have announced a planned merger on March 31, 2022.

The merger is intended to leverage synergies that will strengthen their product/process portfolio and technical knowledge. The merged entity will retain the Keystone Powdered Metal Company name and will continue to serve the automotive, outdoor power equipment, and industrial equipment markets in North America.

Founded in 1927, KPMC has long been a player in the metal powder industry, responsible for many product innovations over its history. The company’s headquarters and primary manufacturing facility is located in St Marys, Pennsylvania. Keystone Powdered Metal Company also has two satellite plants in Lewis Run, Pennsylvania, and Cherryville, North Carolina. Keystone was acquired by SEI in 2016 and has become the flagship for the North American powder metal production group.

ESC was established in 1989 as a joint venture between Sumitomo Electric and Eaton Corporation for automotive valve train component manufacturing. Sumitomo went on to gain majority ownership and grew the business to become a leading supplier of powder metal components, specialising in machined products. It is located a short distance from the KPMC Cherryville facility.

“The synergies of the two companies led us to the decision to pursue the merger,” commented Michael Stauffer, KPMC president. “Today’s KPMC product mix leans heavily toward large-tonnage highly engineered transmission components, while ESC is more focused on high-precision engine components. We believe our customers will derive significant value from this merger.”

Marty Todd, ESC president added, “Merging the complementary technical staffs will serve our customers well into the future.”

In the latest issue of PM Review…

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