Alcoa signs $1bn supply contract with Boeing

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By TESTCustomwebLP TESTCustomwebLP September 12, 2014 19:24

Alcoa signs $1bn supply contract with Boeing

Aluminium supplier Alcoa Inc has reported signing a long-term contract to supply Boeing with aluminum sheet and plate that is worth more than US$1 billion.

Alcoa said the new contract is the largest-ever between the two companies. Alcoa did not disclose a precise value or time frame for the deal.

The deal is part of Alcoa’s bid to expand its presence in the aerospace sector after it announced a US$2.85 billion deal in June to buy jet engine parts manufacturer Firth Rixson.

Alcoa said the agreement announced on Thursday “establishes a foundation for continued collaboration” on new alloys, including aluminum-lithium. The deal makes Alcoa the sole supplier of wing skins for Boeing aircraft that have a metallic structure.
Boeing Chief Operating Officer Dennis Muilenburg said that Alcoa had been “very responsive in helping Boeing deal with sharp increases in demand for commercial aircraft.”

Muilenburg said the deal announced on Thursday was part of the Boeing’s broader “Partnering for Success” initiative to procure substantial discounts from its regular suppliers.

“This is something that’s good for Boeing, it’s good for Alcoa,” Muilenburg added.

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By TESTCustomwebLP TESTCustomwebLP September 12, 2014 19:24