Alcoa Awarded Multi-year, $470 Million Contract with Embraer

June 30, 2016
  • Alcoa aluminum sheet and plate to have prominent position on Embraer’s new E-Jet E2 family of jet airliners, scheduled to enter into service in 2018
  • The agreement between the companies makes Alcoa sole supplier for proprietary wing skins and fuselage sheet
  • Embraer planes will feature proprietary Alcoa alloys, chosen for superior combination of strength, corrosion resistance and fatigue resistance

Lightweight metals leader Alcoa (NYSE:AA) today announced a long-term
contract with Embraer – the leading manufacturer of commercial jets up
to 130 seats – valued at approximately $470 million. Under the multiyear
agreement, Alcoa will supply aluminum sheet and plate for Embraer’s new
E2s, the second generation of its E-Jets family of commercial aircraft,
a narrow-body medium-range jet airliner. The Embraer E-Jets E2 were
launched at the Paris Airshow in 2013 and are scheduled to enter into
service in 2018.

“Our partnership with Embraer is rooted in constant innovation and this
contract is further proof of that strength,” said Mark Vrablec,
President of Alcoa’s Aerospace & Automotive Products business. “Our
patented alloys enable us to support our customer’s game-changing E2
program, and we’re proud that Alcoa will fly with Embraer.”

Embraer chose Alcoa’s proprietary alloys for the E2 due to the
combination of strength, corrosion resistance and fatigue resistance
that they offer.

“Alcoa offers a good combination of technical expertise and industry
leading material and capabilities,” said Fernando Queiroz, Embraer Vice
President, Supply Chain. “Embraer designed the E-Jets E2 commercial
aircraft to be the best in its segment and to do that, we needed the
best material in the business, and Alcoa offers the best solution.”

According to Embraer, the market segment that the new E2 program was
designed to serve is projected to require 6,350 new aircraft over the
next 20 years. In addition, Embraer also stated that it has
more than 50 percent market share by orders with the current E-Jet and
expects to maintain similar levels with the new E-Jets E2 aircraft.

The long-term agreement makes Alcoa sole supplier to Embraer for
proprietary wing skins and fuselage sheet on the E2 line of jets. Other
Alcoa plate products, used in key applications such as wing ribs,
fuselage frames and other structural parts of the aircraft, are also
part of the contract and will be featured on the E2 as well as Embraer’s
KC-390 military transport aircraft and executive jets.

Alcoa has developed most of the aluminum aerospace alloys to ever take
flight, and every major new aircraft program incorporates Alcoa’s
product innovations. The Alcoa/Embraer partnership draws on the
aerospace manufacturing capabilities of Alcoa’s Global Rolled Products
business, supplying Embraer from its plants in Davenport, Iowa, and
Kitts Green, United Kingdom.

Alcoa products can also be found on other parts of the E2 aircraft: the
state-of-the-art Pratt & Whitney PurePower® engine. Alcoa
already supplies key parts for the PurePower®
including the forging for the first ever aluminum fan blade.

About Alcoa Aerospace

Alcoa’s aerospace businesses will form part of Arconic
– Alcoa’s new Value-Add company – to be launched following Alcoa’s
in the second half of 2016. Arconic 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 aerospace structures, jet engine and
industrial gas turbine airfoils, and aerospace fasteners. The separation
remains subject to the satisfaction of certain conditions, including
obtaining final approval from the Alcoa Board of Directors, receipt of a
favorable IRS ruling and opinions of Alcoa’s tax advisors regarding
certain U.S. federal income tax matters and the effectiveness of the
Form 10.

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 approximately 58,000 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 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,” “estimates,” “expects,” “may,” “plans,” “projects,”
“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 the separation transaction and projections regarding growth of
the aerospace and other end markets. Forward-looking statements are not
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uncertainties, and changes in circumstances that are difficult to
predict. Although Alcoa believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it can
give no assurance that these expectations will be attained and it is
possible that actual results may differ materially from those indicated
by these forward-looking statements due to a variety of risks and
uncertainties. 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 possibility that various closing conditions
for the separation may not be satisfied; (c) the outcome of
contingencies, including legal proceedings; (d) unfavorable changes in
the markets served by Alcoa, including the aerospace market; and (e) the
other risk factors discussed in Alcoa’s Form 10-K for the year ended
December 31, 2015, 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.

Alcoa Investor
Matt Garth
Alcoa Media
Lori K. Lecker