Alcoa wins $1.1B, 10-year contract for jet engine components
Alcoa Inc. announced $1.1 billion agreement on Monday to supply Pratt & Whitney with jet engine components, underscoring the company's efforts to strengthen its aerospace business and offset declining aluminum prices.
The 10-year deal was signed at the Farnborough Air Show in the United Kingdon. The components Alcoa will provide the United Technologies Corp. jet engine division include aluminum fan blades that use alloys produced at Alcoa Technical Center in Upper Burrell.
“This is another step in the right direction for Alcoa as it continues to grow its aerospace business,” said analyst Anthony Rizzuto Jr. of Cowen & Co.
Alcoa's engineered products segment, which includes aerospace, had record second-quarter operating profit. The company hopes to add to that with the $3 billion acquisition of U.K.-based Firth Rixson Ltd., a jet-engine components maker. Alcoa said the acquisition, announced last month, will boost aerospace revenue by 20 percent to about $4.8 billion a year.
The company plans to use aluminum and aluminum-lithium produced at the technical center and in Lafayette, Ind., for front fan blades, manufactured at its Cleveland plant. Other plants in Indiana, Michigan, New Jersey and Texas will supply blades, vanes and structural components, using nickel-based superalloys, titanium as well as aluminum.
“We're going where no materials scientist has gone before,” said Alcoa CEO Klaus Kleinfeld. “Combining Alcoa's proprietary alloys and unique manufacturing processes with Pratt & Whitney's design, we cracked the code on forging an aluminum fan blade that is lighter and enables better fuel efficiency.”
John D. Oravecz is a staff writer for Trib Total Media. He can be reached at 412-320-7882 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Tech sector drives gains on Wall Street
- Acura ILX strikes balance
- Airlines’ bottom lines soar on cheaper fuel
- Comcast abandons Time Warner Cable merger deal amid regulators’ pushback
- Guessing approach can result in big bill
- Experts: If health insurers’ safeguard goes broke, consumers could pay
- What price safety? Cost of crash prevention is roadblock
- MedExpress bought by United Health Group
- Camera prevalence approaches sci-fi realm
- Frederick’s seeks bankruptcy after closing lingerie stores
- Scented society is killing cheap perfume industry