Alcoa Announces Long-term Supply Contracts With Boeing Valued At Over $2.5bln

(RTTNews) - Alcoa (AA) announced long-term supply contracts with Boeing (BA) valued at over $2.5 billion. Alcoa said it will supply multi-material fastening systems for every Boeing platform. Alcoa also will supply ready-to-install titanium seat track assemblies for the entire 787 Dreamliner family.

Under one contract, Alcoa Fastening Systems & Rings will supply advanced titanium, stainless steel, alloy steel, aluminum and nickel-based superalloy fastening systems for every Boeing platform, including the 777X—Boeing's newest commercial airplane—the 737 MAX—scheduled for first delivery in 2017—and the 787 Dreamliner. Alcoa will produce these fastening systems at seven of its global manufacturing facilities.

Alcoa also announced a second agreement under which it is the sole supplier of ready-to-install titanium seat track assemblies for all three members of the 787 Dreamliner family of airplanes. RTI International Metals (RTI)—now known as Alcoa Titanium & Engineered Products (ATEP)—has provided seat tracks for the 787-9 and 787-8 variants under a contract signed in 2007. This contract, as amended by RTI and Boeing immediately prior to the acquisition, reinforces ATEP's position on those variants and adds seat tracks for the 787-10.

Alcoa is supplying the seat tracks, from raw material to finished part, by utilizing its titanium ingot melting and billetizing, extrusion, machining, processing and assembly capabilities gained through the RTI acquisition.

These contracts build on last year's deal with Boeing for flat-rolled aluminum sheet and plate products, valued at more than $1 billion. That agreement established Alcoa as a sole supplier to Boeing for wing skins on all of its metallic structure airplanes. Alcoa plate products, used in applications such as wing ribs, wing skins or other structural parts of the aircraft, are used on every Boeing platform, including the 787. The agreement also established deeper collaboration on new, high-strength and corrosion-resistant alloys, including aluminum-lithium.

Alcoa noted that its aerospace businesses will form part of the new Value-Add Company, to be launched following Alcoa's previously announced separation in the second half of 2016.