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 travel.”
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 acquisition.
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.
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 www.alcoa.com, follow @Alcoa on Twitter at www.twitter.com/Alcoa and follow us on Facebook at www.facebook.com/Alcoa.
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 www.afsr.alcoa.com.
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.
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.