Announcement Reinforces Company’s 8-9% Global Aerospace Growth Expectation
Alcoa (NYSE:AA), the global leader in aerospace sheet and plate products, today announced it has signed a long-term agreement to supply aluminum sheet to Spirit AeroSystems, Inc. in a contract valued at approximately $290 million over five years. On April 8, Alcoa increased its 2014 global aerospace growth expectation by one percentage point to 8 percent to 9 percent, on strong demand for both large commercial aircraft and regional jets and continued growth in the business jet market.
“Alcoa produces lightweight metallic solutions for the aerospace industry that deliver strength, aerodynamic efficiencies, and corrosion resistance,” said Mark Vrablec, President, Global Aerospace, Transportation and Industrial Rolled Products at Alcoa. “This new multi-year contract with Spirit deepens our collaborative relationships and enables us to continue to grow in this important market. We are well-established in the aerospace industry and offer the best value and performance to our customers.”
Spirit is one of the largest designers and manufacturers of aerostructures for commercial, military, business and regional jets in the world.
Alcoa will provide Spirit with aluminum sheet products for fuselage skins from its Davenport (Iowa) facility, which houses the world’s largest and most advanced aluminum rolling mill.
Alcoa’s aerospace business, which had revenues totaling $4 billion in 2013, holds leading market positions in aerospace forgings, extrusions, jet engine airfoils and fastening systems produced by its downstream business, Engineered Products and Solutions (EPS), and aerospace sheet and plate produced by its midstream business, Global Rolled Products (GRP). The Company’s value-add businesses, comprising EPS and GRP, accounted for 58 percent of Alcoa's first quarter 2014 revenues and 76 percent of the Company’s total segment after-tax operating income.
Source: Alcoa.com
