TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Alcoa wins $1.1B, 10-year contract for jet engine components

Monday, July 14, 2014, 1:48 p.m.
 

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 joravecz@tribweb.com.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Stocks snap 4-day rally on Yellen speech, Russia-Ukraine developments
  2. Google Maps opens business doors to online views for shoppers
  3. Utility regulator seeks $639,000 in penalties from electric supplier
  4. Indian firm plans exports of ethane from U.S. shale fields
  5. Gas production from Marcellus shale sets record despite fewer new wells going online
  6. Many in Pennsylvania can still get benefit of Affordable Care Act
  7. In 10 years as public company, Google has reshaped IPO landscape, more
  8. 5 apps that make you say ‘wow’
  9. Few homeowners expected to benefit from Bank of America’s $16.65B settlement
  10. United tries to woo fliers with upgraded food options
  11. Honda recalls Fits to improve their crash resistance
Subscribe today! Click here for our subscription offers.