12/16/2013 11:55:00 AM
NEWS BRIEFS
Alcoa Inks Long-Term Airbus Deal For Aerospace Parts

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Alcoa signed a multi-year supply agreement with Airbus valued at approximately $110 million for value-add titanium and aluminum aerospace forgings. Alcoa will produce the parts using its recently modernized 50,000-ton press in Cleveland, OH. 

“Our expertise innovating highly engineered products, long history in aerospace, and the unmatched capabilities of our 50,000-ton press make Alcoa uniquely qualified to produce high-end solutions for the most advanced aircraft,” said Olivier Jarrault, Executive Vice President and Alcoa Group President, Engineered Products and Solutions. 

Alcoa will supply titanium parts, including forgings used to connect the wing structure to the engine, for the A320neo, Airbus’s most fuel-efficient single-aisle jet. 

The agreement also includes several large aluminum forgings for the A330 and A380—including the A380 inner rear wing spar, which is the largest aerospace forging in the world— that will be made using Alcoa’s proprietary 7085 alloy for large structural aircraft components. Most of these forgings support the wing structure where strength-to-weight ratio is critical to efficient flight performance.

In 2012, Alcoa signed $1.4 billion in supply agreements with Airbus for Alcoa’s aluminum sheet, plate and hard alloy extruded products utilizing Alcoa’s current, advanced-generation and aluminum lithium alloys. Included in those deals were orders for Alcoa specialty fasteners and structural castings.

In October Alcoa reported revenue at its Engineered Products and Solutions segment, including Alcoa Fastening Systems, rose 5.1% to $1.4 billion in the third quarter of 2013, after-tax operating income up 22% year-over-year to $192 million and quarterly adjusted EBITDA margin achieved a record. Q3 third party aluminum shipments increase 13.2% to 60 kmt.

Nine-month Engineered Products sales increase 3.6% to $4.3 billion, while third party aluminum shipments rose 1.8% to 173 kmt and operating income climbed 18.2% to $558 million. ©2013 GlobalFastenerNews.com

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• Alcoa