Deal Extends and Adds to Previous Contract, Drawing on Arconic’s Advanced Aluminum Plate Technology
- Adds content to support Boeing programs, including the 787 and 777X, drawing on Arconic’s latest aerospace manufacturing technology, the Very Thick Plate Stretcher (VTPS)
- Captures growth in build rate increases of 737 program
Global technology, engineering and advanced manufacturing leader Arconic
(NYSE: ARNC) today announced it has signed a new long-term contract with
Boeing (NYSE: BA) to supply aluminum sheet and plate for all models
produced by Boeing Commercial Airplanes. The multiyear contract, which
extends and adds to the companies’
2014 contract, is the largest to date and captures growth in the
build rate increases of the Boeing 737 program.
“This agreement demonstrates Arconic’s commitment to deliver quality and
innovation to our customers,” said Tim Myers, President of Arconic
Global Rolled Products and Transportation and Construction Solutions.
“We’re proud of our more than 40 years of collaboration with Boeing, and
we look forward to playing a role in their continued success.”
The new agreement builds on Arconic’s collaboration with Boeing for wing
skins on all of its metallic structure airplanes and includes polished
fuselage skins and wing ribs. In addition, Boeing awarded Arconic new
business for the supply of structural plate used on a variety of other
applications, including wing ribs for carbon fiber platforms such as the
787 and 777X.
The deal draws on material produced by Arconic’s Very
Thick Plate Stretcher (VTPS), which began commercial production last
year and is capable of stretching the thickest aluminum plate in the
world, used to support composite wings. Combined with its
new horizontal heat treat furnace, which is expected to begin
qualifications in 2019, Arconic is able to offer expanded capabilities
and capacity in thick plate products. One of the challenges composite
wing makers face as the wings get larger is maintaining their structural
strength and stiffness. Aluminum plate from Arconic’s stretcher enables
aircraft manufacturers to address that issue. As a result, demand for
thick aluminum plate is growing, particularly as larger composite wings,
made with monolithic thick plate wing ribs, increases.
Under this agreement, the companies will also continue to collaborate on
new, high-strength and corrosion-resistant alloys, including
aluminum-lithium that could be used for complex structural applications.
Arconic’s aerospace business, which had revenues totaling more than $5
billion in 2017, holds leading market positions in aerospace sheet and
plate produced by its Global Rolled Products (GRP) business and in
aerospace forgings, extrusions, jet engine airfoils, structural castings
and fastening systems produced by its Engineered Products and Solutions
Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we solve
complex engineering challenges to transform the way we fly, drive, build
and power. Through the ingenuity of our people and cutting-edge advanced
manufacturing techniques, we deliver these products at a quality and
efficiency that ensure customer success and shareholder value. For more
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Arconic intends to make future announcements regarding Company
developments and financial performance through its website at www.arconic.com.
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,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“guidance,” “goal,” “intends,” “may,” “outlook,” “plans,” “projects,”
“seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of
similar meaning. All statements that reflect Arconic’s expectations,
assumptions or projections about the future, other than statements of
historical fact, are forward-looking statements, including, without
limitation, statements regarding demand for thick aluminum plate.
Forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties, and changes in circumstances that
are difficult to predict. 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, including, but not limited to,
deterioration in global economic and financial market conditions
generally, and unfavorable changes in the aerospace market. Market
projections are subject to the risks discussed above and other risks in
the market. Arconic 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.