Company Aluminum Lithium Revenue Projected to Quadruple by 2019
Alcoa (NYSE:AA) today announced it has completed the expansion of
aluminum lithium capacity at its Kitts Green facility in the United
Kingdom to serve the growing demand for the Company’s 3rd
generation aluminum lithium alloys. Alcoa projects its aluminum lithium
revenues will quadruple over the next six years to nearly $200 million.
The Kitts Green expansion was the second phase of the three-part
expansion program by the Company to satisfy customer demand for advanced
aerospace products and patented alloys, which allow airframers to build
more fuel efficient and lower-cost airplanes vs. composite alternatives.
The completion of the Kitts Green expansion was announced at the Paris
Air Show.
Alcoa upgraded and expanded casting capacity at the Kitts Green plant
and also expanded capacity at its Technology Center in Alcoa Center, PA
by 30 percent. The third phase of the expansion is a new $90 million
facility under construction adjacent to the Company’s Lafayette, Indiana
plant that will provide an additional 20,000 metric tons of aluminum
lithium. The new facility will supply round and rectangular ingot for
rolled, extruded and forged applications, in sizes compatible with the
largest aluminum aerospace components in service today. The Lafayette
expansion is scheduled to be completed and online by the end of 2014.
Alcoa’s new aluminum lithium alloys provide the best strength-to-weight
performance in Alcoa’s aerospace alloy portfolio combined with better
stiffness, damage tolerance, and corrosion resistance. The alloys are
used in extrusions, forgings, sheet and plate applications across
aircraft structures, including airplane wings and fuselage components.
The expansions follow discussions with airframers subsequent to the
launch of the alloys.
“We introduced our third-generation aluminum lithium alloys at the last
Paris Air Show and demonstrated their potential to increase fuel
efficiency, reduce inspection intervals, improve passenger comfort and
lower capital costs for aerospace manufacturers,” said Mark Vrablec,
President of Alcoa Aerospace, Transportation and Industrial Rolled
Products. “The response was phenomenal. In fact, the response indicated
demand that exceeded our production capacity at the time, so we launched
initiatives to expand our aluminum lithium operations at three locations
around the world. The initiative also provided us with the opportunity
to increase our aerospace recycling capability for customers to
benchmark status in the industry,” Vrablec added.
About Alcoa Aerospace
Alcoa Aerospace is comprised of 4 businesses with operations across the
world totaling approximately $3.8 Billion in value-added revenue and #1
share positions in their markets: Alcoa Global Rolled Products and Alcoa
Forgings and Extrusions serving the structures market; and Alcoa
Fastening Systems and Alcoa Power and Propulsion. Alcoa’s aerospace
solutions run from nose to tail and from wing-tip to wing-tip. Alcoa has
been at the forefront of every major milestone in aerospace history
based on its commitment to continually innovate and a “beyond materials”
philosophy – where materials, structures, and designs work in concert to
provide optimal solutions for customers.
About Alcoa
Alcoa is the world’s leading producer of primary and fabricated
aluminum, as well as the world’s largest miner of bauxite and refiner of
alumina. In addition to inventing the modern-day aluminum industry,
Alcoa innovation has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 125 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa® wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa’s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for 11 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 30
countries across the world. For more information, visit www.alcoa.com
and follow @Alcoa on Twitter at twitter.com/Alcoa and follow Alcoa on
Facebook at www.facebook.com/Alcoa.
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,” “projects,” “should,” “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 concerning demand for aluminum lithium
alloys and advanced aerospace products, projections of revenues or other
financial results, operating performance or trends, and statements about
Alcoa’s strategies, objectives, outlook, targets and business and
financial prospects. Forward-looking statements are subject to a number
of known and unknown risks, uncertainties, and other factors and are not
guarantees of future performance. Actual results, performance, or
outcomes may differ materially from those expressed in or implied by
those forward-looking statements. Some of the important factors that
could cause actual results to differ materially from those in the
forward-looking statements include: (a) material adverse changes in
aluminum industry conditions; (b) unfavorable changes in general
business and economic conditions, in the global financial markets, or in
the markets served by Alcoa, including aerospace, automotive and
commercial transportation, building and construction, distribution,
packaging, defense, and industrial gas turbines; (c) the impact of
changes in foreign currency exchange rates on costs and results; (d)
increases in the costs of energy or other raw materials or the
unavailability or interruption of energy supplies; (e) Alcoa’s inability
to achieve the level of revenue growth, cash generation, cost savings,
improvement in profitability and margins, fiscal discipline, or
strengthening of competitiveness and operations anticipated from its
restructuring programs and productivity improvement, cash
sustainability, technology, and other initiatives; (f) Alcoa’s inability
to realize expected benefits from newly constructed or expanded
facilities, including facilities supplying aluminum lithium capacity, as
planned and by targeted completion dates; (g) changes in competitive
conditions, including actions by competitors and developments in
technology and products, including risks relating to customer acceptance
of aluminum or patented alloys in substitution for competing materials;
(h) political, economic, and regulatory risks in the countries in which
Alcoa operates or sells products, including unfavorable changes in laws
and governmental policies, civil unrest, or other events beyond Alcoa’s
control; (i) failure to maintain investment grade credit ratings; (j)
the outcome of contingencies, including legal proceedings, government
investigations, and environmental remediation; (k) the business or
financial condition of key customers, suppliers, and business partners;
(l) the impact of cyber attacks and potential information technology or
data security breaches; and (m) the other risk factors summarized in
Alcoa’s Form 10-K for the year ended December 31, 2012, and other
reports filed with the 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.
Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
or
Media Contact
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or
Monica Orbe, 212-836-2632 (NY)