B2B Portal for Technical and Commercial Foundry Management
Languages

Foundry Daily News

03. März 2015

USA - Alcoa Completes Acquisition of TITAL

Expands Global Growth Platform for Titanium Aerospace Components

  • Supports Alcoa’s strategy of growing globally in innovative, high-performance aerospace metals, particularly titanium
  • Expands Alcoa’s titanium casting capabilities into Europe, with strong customer relationships
  • TITAL’s revenues from titanium are expected to increase by 70 percent over the next five years
  • Almost 70 percent of TITAL’s revenues are expected to come from commercial aerospace sales in 2019

Lightweight, high-performance metals leader Alcoa (NYSE: AA) today announced that it has completed the acquisition of privately held TITAL. Alcoa closed the transaction, which was announced on December 15, 2014, after receiving all of the required global regulatory approvals.

TITAL is a leading manufacturer of titanium and aluminum structural castings for aircraft engines and airframes. This acquisition strengthens Alcoa’s ability to capture growing demand for advanced aircraft engine components, in particular, those made of titanium. TITAL establishes titanium casting capabilities in Europe for Alcoa, and expands the Company’s aluminum casting capacity. Additionally, TITAL’s strong connections to European engine and aircraft manufacturers such as Airbus, SNECMA, and Rolls-Royce, will enhance Alcoa’s customer relationships in the region and beyond.

“We are combining two leading, innovation-driven businesses to continue increasing Alcoa’s highly differentiated content on the world’s best-selling airplanes and jet engines,” said Olivier Jarrault, Executive Vice President and Alcoa Group President, Engineered Products and Solutions. “This transaction supports our strategy of creating a more profitable future by growing our value-add businesses. Through these efforts, Alcoa will continue delivering greater sustainable value for our customers, employees and shareholders.”

With TITAL, Alcoa is well positioned to capitalize on strong demand growth in the commercial aerospace sector. Alcoa sees a current 8-year production order book at 2014 delivery rates. Almost 70 percent of TITAL’s revenues are expected to come from commercial aerospace sales in 2019. Further, its titanium revenues are expected to increase by 70 percent over the next five years as manufacturers of next-generation jet engines look to titanium solutions for engine structural components. In 2014, TITAL generated revenues of approximately €77 million (approximately US$100 million), more than half of which c
ame from titanium products.

Alcoa is implementing a robust integration plan to support TITAL’s growth and to further improve productivity, primarily driven by procurement, internal metal supply, manufacturing optimization and leveraging Alcoa’s global shared services. TITAL’s business is being integrated into Alcoa’s Engineered Products and Solutions (EPS) segment.

Alcoa Aerospace

Alcoa has been aggressively growing its aerospace business as part of the Company’s broader transformation. In 2014, Alcoa completed the acquisition of global jet engine component leaderFirth Rixson. This was the first of two announced acquisitions, including the TITAL transaction. Alcoa also announced investments to expand jet engine parts production in Indiana and Virginia, opened the world’s largest aluminum-lithium facility in Indiana, and in Michigan, plans to expand its coatings capabilities for jet engine components. In addition, the Company announced plans to install advanced aerospace plate manufacturing capabilities in
Iowa. It also announced in 2014 supply deals exceeding $2 billion withBoeing and Pratt & Whitney, which included the world’s first forging for an aluminum fan blade for Pratt & Whitney’s PurePower® jet engines. The PurePower engine will be used to power some of the world’s highest volume aircraft, including the next-generation Airbus A320neo.

Alcoa’s aerospace business holds the number one global position in aluminum forgings and extrusions, jet engine airfoils and fastening systems and is a leading supplier of structural castings made of titanium, aluminum and nickel-based superalloys and aluminum sheet and plate. It also holds the number one global position in seamless rolled jet engine rings, engineered from nickel-based superalloys and titanium, and is one of the world’s leading suppliers of vacuum melted superalloys used to make aerospace, industrial gas turbine, oil and gas products and structural components for landing gear applications. It also has entered into a highly specialized segment of jet eng ine forgings that require isothermal forging technology.

Source: Alcoa

Related Articles

Youtube Google+ Linkedin Xing