Alcoa Announces Multiyear Supply Contracts with Boeing Valued at More Than $2.5 Billion

December 17, 2015

Contracts include Alcoa’s Largest-Ever Fastener Deal; Agreement to Supply Ready-to-Install Seat Tracks for Every Boeing 787 Dreamliner

  • Deals strengthen Alcoa’s position on newest Boeing platforms, including the 737 MAX, 777X and 787 Dreamliner
  • Draws on titanium, machining and assembly capabilities gained through RTI acquisition
  • Contracts build on last year’s aluminum sheet and plate deal with Boeing, valued at more than $1 billion

Lightweight metals leader Alcoa (NYSE:AA) today announced long-term
supply contracts with Boeing (NYSE: BA) valued at over $2.5 billion.
Alcoa will supply multi-material fastening systems for every Boeing
platform in its largest fastener deal ever. Alcoa also will supply
ready-to-install titanium seat track assemblies for the entire 787
Dreamliner family.

“Alcoa has positioned itself to win in a multi-material aerospace
industry, and these deals are the latest proof points that our strategy
is working,” said Alcoa Chairman and Chief Executive Officer Klaus
Kleinfeld. “We are proud to partner with Boeing as it delivers
sophisticated airplanes to meet the world’s increasing demand for air

Under one contract, Alcoa Fastening Systems & Rings will supply advanced
titanium, stainless steel, alloy steel, aluminum and nickel-based
superalloy fastening systems for every Boeing platform, including the
777X—Boeing’s newest commercial airplane—the 737 MAX—scheduled for first
delivery in 2017—and the 787 Dreamliner. Alcoa will produce these
fastening systems at seven of its global manufacturing facilities.

Alcoa also announced a second agreement under which it is the sole
supplier of ready-to-install titanium seat track assemblies for all
three members of the 787 Dreamliner family of airplanes. RTI
International Metals (RTI)—now known as Alcoa Titanium & Engineered
Products (ATEP)—has provided seat tracks for the 787-9 and 787-8
variants under a contract
signed in 2007
. This contract, as amended by RTI and Boeing
immediately prior to the acquisition, reinforces ATEP’s position on
those variants and adds seat tracks for the 787-10. Seat tracks are
critical structural assemblies that mount to the floor of the airplane,
secure passenger seats and reinforce the structure of the fuselage.
Titanium seat tracks are stronger, weigh less and offer superior
corrosion resistance compared with traditional materials.

Alcoa is supplying the seat tracks, from raw material to finished part,
by utilizing its titanium ingot melting and billetizing, extrusion,
machining, processing and assembly capabilities gained through the RTI

These contracts build on last
year’s deal with Boeing
for flat-rolled aluminum sheet and plate
products, valued at more than $1 billion. That agreement established
Alcoa as a sole supplier to Boeing for wing skins on all of its metallic
structure airplanes. Alcoa plate products, used in applications such as
wing ribs, wing skins or other structural parts of the aircraft, are
used on every Boeing platform, including the 787. The agreement also
established deeper collaboration on new, high-strength and
corrosion-resistant alloys, including aluminum-lithium.

About Alcoa Aerospace

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.

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 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,
follow @Alcoa on Twitter at and
follow us on Facebook at

About Alcoa Fastening Systems & Rings (AFSR)

Alcoa Fastening Systems & Rings (AFSR), a business unit of Alcoa, is a
leading worldwide designer and manufacturer of fastening systems and
rings, including specialty fasteners, fluid fittings, assembly
components, installation systems, and seamless rings for aerospace and
industrial applications. Headquartered in Torrance, California, the
business unit employs 8,700 people at 39 manufacturing and distribution
and logistics locations in 13 countries. For more information, visit

About Alcoa Titanium & Engineered Products (ATEP)

Alcoa Titanium & Engineered Products (ATEP) supplies advanced titanium
and other specialty metals products and services to the commercial
aerospace, defense, oil & gas and medical device markets. The business
unit offers a portfolio of titanium mill products, extruded shapes,
formed, and 3D-printed parts, as well as high speed machined components
and engineered product forms produced from metal powders. It is an
innovation leader in 3D printing and advanced powder materials
technologies for aerospace, medical and oil & gas applications, as well
as cutting-edge alloys such as titanium-aluminides.

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,” “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.

Investor Contact
Nahla Azmy, 212-836-2674
Media Contact
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