Alcoa inks long-term contract with GE Aviation

Alcoa, with headquarters in New York and Pittsburgh, has signed a long-term contract with GE Aviation for jet engine components in an agreement valued at more than $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.

“We greatly appreciate GE’s continued confidence in Alcoa’s aerospace capabilities and are proud to support its advanced jet engine programs through this agreement,” says Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld.

Alcoa says it 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 says it secured approximately $9 billion in aerospace supply contracts in 2015, including this transaction with GE Aviation.

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