Alcoa Inks $1.5 Billion Deal with GE Aviation
Alcoa signed a long-term contract with GE Aviation for jet engine components in an agreement valued at more than $1.5 billion. Under the deal, Alcoa will supply advanced nickel-based superalloy, titanium and aluminum components for a broad range of GE Aviation engine programs. Alcoa will employ advanced-manufacturing capabilities to produce the parts across several facilities, including LaPorte, Ind.; Whitehall, Mich.; Hampton, Va.; Dover, N.J.; Wichita Falls, Texas; Winsted, Conn.; Dives, France; and Laval, Canada.
In a separate announcement, Alcoa will supply components for the 777X (Boeing’s newest commercial airplane), the 737 MAX (scheduled for first delivery in 2017) and the 787 Dreamliner. The deal draws on capabilities gained through the Firth Rixson acquisition and the company’s new aluminum-lithium facility in Lafayette, Ind. Under the new agreement, Alcoa Forgings and Extrusions will supply differentiated components for Boeing’s airplanes, including the wing, fuselage and landing gear. These include: advanced titanium landing-gear parts and complex titanium nacelle fittings for the 737 MAX; Boeing’s first-ever aluminum-lithium extrusion produced at Alcoa’s Lafayette facility for the 777X cargo floor; and large, near-net-shaped parts that improve the efficiency and help reduce the costs of Boeing’s in-house machining.