Lightweight metals leader Alcoa (NYSE:AA) has signed a long-term contract with GE (NYSE:GE) unit GE Aviation for jet engine components in an agreement valued at more than $1.5 billion over the contract life. Under the deal, Alcoa will supply advanced nickel-based superalloy, titanium and aluminum components for a broad range of GE Aviation engine programs.
“We greatly appreciate GE’s continued confidence in Alcoa’s aerospace capabilities, and are proud to support its advanced jet engine programs through this agreement,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld.
Alcoa will employ advanced manufacturing capabilities to produce the parts across several facilities including LaPorte, Indiana; Whitehall, Michigan; Hampton, Virginia; Dover, New Jersey; Wichita Falls, Texas; Winsted, Connecticut; Dives, France; and Laval, Canada.
Alcoa secured approximately $9 billion in aerospace supply contracts in 2015, including this transaction.
Alcoa’s aerospace businesses will form part of the new Value-Add Company, to be launched following Alcoa’s previously announced separation in the second half of 2016. The Value-Add Company will be a differentiated supplier to the high-growth aerospace industry with leading positions on every major aircraft and jet engine platform, underpinned by market leadership in jet engine and industrial gas turbine airfoils, and aerospace fasteners.
A global leader in lightweight metals technology, engineering and manufacturing, Alcoa innovates multi-material solutions that advance our world. Our technologies enhance transportation, from automotive and commercial transport to air and space travel, and improve industrial and consumer electronics products. We enable smart buildings, sustainable food and beverage packaging, high-performance defense vehicles across air, land and sea, deeper oil and gas drilling and more efficient power generation. We pioneered the aluminum industry over 125 years ago, and today, our more than 60,000 people in 30 countries deliver value-add products made of titanium, nickel and aluminum, and produce best-in-class bauxite, alumina and primary aluminum products. For more information, visit www.alcoa.com, follow @Alcoa on Twitter at www.twitter.com/Alcoa and follow us on Facebook at www.facebook.com/Alcoa.
About Alcoa Power and Propulsion (APP)
Alcoa Power and Propulsion, a major business unit of Alcoa, is the number one supplier of nickel-based superalloy airfoils for jet engine and industrial gas turbine applications. It is also a leading supplier of structural castings made of titanium, aluminum and superalloy for aero engines and airframes. Additional value-add products and services include additive manufacturing, vacuum melted alloys, advanced airfoil coatings and machining, hot isostatic pressing and research & development. With 20 global production facilities, Alcoa Power and Propulsion employs more than 9,600 people worldwide.
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipates,” “expects,” “plans,” “should,” “will,” “would,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding Alcoa’s separation transaction; the future performance of Value-Add Company if the separation is completed; projections of competitive position, market share, or growth opportunities of Value-Add Company; and the expected timing of completion of the separation. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Such risks and uncertainties include, but are not limited to: (a) uncertainties as to the timing of the separation and whether it will be completed; (b) the impact of the separation on the businesses of Alcoa; (c) Alcoa’s inability to realize expected benefits from the separation or the risk that the separation may be more difficult, time-consuming or costly than expected, which could result in additional demands on Alcoa’s resources, systems, procedures and controls, disruption of its ongoing business and diversion of management’s attention from other business concerns; (d) the potential failure to retain key employees while the separation transaction is pending or after it is completed; (e) deterioration in global economic and financial market conditions generally; (f) unfavorable changes in the markets served by Alcoa, including the aerospace market; and (g) the other risk factors discussed in Alcoa’s Form 10-K for the year ended December 31, 2014, and other reports filed with the U.S. Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks discussed above and other risks in the market.