Alcoa, GE Aviation sign long-term contract

Lightweight metals leader Alcoa (NYSE: AA) has signed a long-term contract with GE (NYSE: GE) unit GE Aviation for jet engine components in an agreement valued at more than USD 1.5 billion over the contract life.

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, Indiana; Whitehall, Michigan; Hampton, Virginia; Dover, New Jersey; Wichita Falls, Texas; Winsted, Connecticut; Dives, France; and Laval, Canada.

Alcoa secured approximately USD 9 billion in aerospace supply contracts in 2015, including this transaction.

Alcoa´s 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. The Value-Add company will be a differentiated supplier to the high-growth aerospace industry with leading positions on every major aircraft and jet engine platform, underpinned by market leadership in jet engine and industrial gas turbine airfoils, and aerospace fasteners.

A global leader in lightweight metals technology, engineering and manufacturing, Alcoa innovates multi-material solutions that advance our world.