Alcoa Opens Advanced Jet Engine Parts Facility in Indiana

October 29, 2015

Plant Doubles Capacity in La Porte, Meeting Growing Demand from Aerospace Engine Manufacturers

  • Approximately $100 million, 320,000-square-foot expansion produces nickel-based structural components for industry’s best-selling jet engines
  • Enables production of nearly 60 percent larger structural parts, broadening reach into large commercial jet engine market
  • Supports growth of Alcoa’s value-add business in aerospace
  • To create 329 jobs by 2019; 155 new jobs already added


Lightweight metals leader Alcoa (NYSE: AA) today officially opened its
state-of-the-art jet engine parts facility in La Porte, Indiana. The
facility doubles Alcoa’s capacity in La Porte and provides new
capabilities that broaden its reach in engines for large commercial
aircraft. The new plant will meet increasing demand from makers of
best-selling jet engines, growing Alcoa’s value-add business in

“Innovation is at the heart of the La Porte expansion,” said Alcoa
Chairman and CEO Klaus Kleinfeld. “We combined some of the world’s best
metallurgists, product engineers and manufacturing experts to broaden
our capabilities and deliver the highly advanced components our
customers need to build jet engines at high volumes.”

The approximately $100 million, 320,000-square-foot expansion, announced
last year
, enables Alcoa to manufacture single piece structural
parts—components that encase the rotating parts of an engine—that are
nearly 60 percent larger than those already produced in La Porte. These
new capabilities have broadened Alcoa’s reach into wide- and narrow-body
aircraft engines. As an example, the new facility will supply structural
components for the PurePower® and other engines under a
10-year, $1.1 billion contract with Pratt
& Whitney
announced last year. The La Porte facility also is
partnering with other major aerospace engine manufacturers and their
partners to supply parts for next-generation engine programs.

The facility employs the latest in high-tech, advanced manufacturing
equipment, including digital x-ray and blue light technology for
enhanced quality assurance. It also 3D-prints resin patterns for
metallic prototypes and uses automated casting furnaces with advanced
controls to meet precise product specifications.

The plant grows Alcoa’s value-add business in the soaring aerospace
market and complements Alcoa’s acquisition
, which established titanium structural casting capabilities
in Europe, and expanded its aluminium casting capacity. Alcoa is the
world leader in jet engine blades and vanes, and through the La Porte
expansion and TITAL acquisition, is becoming a leader in structural

Ribbon Cutting

Indiana Lieutenant Governor Sue Ellspermann and other state and local
dignitaries today are joining Alcoa executives, employees and aerospace
customers to celebrate the opening of the plant which will create 329
jobs by 2019. The facility has already added 155 of those positions.

“Alcoa is building on our state’s advanced manufacturing leadership, as
well as providing increased opportunities for high quality careers for
our community,” said Indiana Lt. Gov. Sue Ellspermann. “Alcoa is one of
several aerospace companies choosing to expand in the Hoosier State,
together announcing plans to invest more than $900 million and create
more than 1,200 new jobs in the coming years.”

The Indiana Economic Development Corporation has offered Alcoa up to $4
million in conditional tax credits based on the Company’s job creation
plans. In addition, the city of La Porte has approved tax incentives
worth $7.1 million over a 10-year period.

“The City of La Porte is proud to celebrate this plant expansion with
the Alcoa Team,” said La Porte Mayor Blair Milo. “This advanced facility
grows our partnership with Alcoa and creates advanced manufacturing job
opportunities for our community. We are excited to build on our
partnership with Alcoa as it continues to enjoy growth and success.”

Alcoa in Indiana

Alcoa employs approximately 3,200 people at three locations in Indiana.

This is Alcoa’s second plant opening in Indiana in just over a year. In
October 2014, the Company announced the opening of its $90 million
greenfield state-of-the-art aluminum-lithium
—the largest in the world—in Lafayette, Indiana. The
Lafayette cast house can produce more than 20,000 metric tons (44
million pounds) of aluminum-lithium annually. Aircraft manufacturers are
increasingly turning to lighter and stronger aluminum-lithium alloys,
which are less expensive than composites and enable increased fuel
efficiency and lower maintenance costs.

Alcoa Aerospace

Alcoa has been growing its multi-material aerospace business to capture
growth in the global aerospace market in support of its broader
transformation, and has become a leader in jet engine components and
aircraft structures. Alcoa acquired global titanium leader RTI
International Metals
, aerospace components manufacturer TITAL
and global jet engine parts leader Firth
. On a pro forma basis, Alcoa’s 2014 aerospace revenues
reached $5.6 billion following these acquisitions, making it one of the
world’s largest aerospace parts manufacturers.

Alcoa also has grown organically. It opened the world’s largest
aluminum-lithium facility in Lafayette, Indiana,
launched expansions to increase jet engine parts production in La
Porte, Indiana
 and Hampton,
, began installation of advanced aerospace plate
manufacturing capabilities in Davenport,
, announced plans to double its coatings capabilities for jet
engine components in Whitehall,
, announced an investment in technology that strengthens the
metallic structures of traditional and additive manufactured parts in Whitehall,
and announced plans to expand its R&D
center in Pittsburgh, Pennsylvania
to accelerate the development of
advanced 3D-printing materials and processes.

These investments support Alcoa’s strategy to build the value-add
business for profitable growth and greater innovation in the aerospace
market. As reported
on October 8
, the Company expects robust global aerospace sales
growth of 8 to 9 percent in 2015.

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About Alcoa

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,
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Forward-Looking Statements

This press release contains statements about future events and
expectations, or “forward-looking statements,” all of which are
inherently uncertain. Forward-looking statements include those
containing such words as “estimates,” “expects,” “plans,” “should,”
“may,” “will,” 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, forecasts regarding global
aerospace sales growth, and expected benefits of Alcoa’s acquisitions
and investments growing its multi-material aerospace business, including
the expansion of the La Porte, Indiana facility. Forward-looking
statements are subject to risks and uncertainties and are not guarantees
of future performance. Important factors that could cause actual results
to differ materially from those expressed or implied in the
forward-looking statements include: (a) unfavorable changes in the
markets served by Alcoa, including the aerospace market; (b) failure to
realize expected benefits from new technologies, processes, or
equipment; innovative products; advanced alloys; acquisitions; or
expanded facilities, including the La Porte facility, whether due to
competitive developments, changes in the regulatory environment, failure
to meet customer specifications, or other factors; and (c) the other
risk factors discussed in Alcoa’s Form 10-K for the year ended December
31, 2014 and other reports filed with the Securities and Exchange
Commission. Alcoa disclaims any intention or obligation to update
publicly any forward-looking statements, whether in response to new
information, future events or otherwise, except as required by
applicable law.

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