Arconic Signs Its Largest Multiyear Supply Contract With Boeing
July 16 2018 - 8:00AM
Business Wire
Deal Extends and Adds to Previous Contract,
Drawing on Arconic’s Advanced Aluminum Plate Technology
- Adds content to support Boeing
programs, including the 787 and 777X, drawing on Arconic’s latest
aerospace manufacturing technology, the Very Thick Plate Stretcher
(VTPS)
- Captures growth in build rate increases
of 737 program
Global technology, engineering and advanced manufacturing leader
Arconic (NYSE: ARNC) today announced it has signed a new long-term
contract with Boeing (NYSE: BA) to supply aluminum sheet and plate
for all models produced by Boeing Commercial Airplanes. The
multiyear contract, which extends and adds to the companies’ 2014
contract, is the largest to date and captures growth in the build
rate increases of the Boeing 737 program.
“This agreement demonstrates Arconic’s commitment to deliver
quality and innovation to our customers,” said Tim Myers, President
of Arconic Global Rolled Products and Transportation and
Construction Solutions. “We’re proud of our more than 40 years of
collaboration with Boeing, and we look forward to playing a role in
their continued success.”
The new agreement builds on Arconic’s collaboration with Boeing
for wing skins on all of its metallic structure airplanes and
includes polished fuselage skins and wing ribs. In addition, Boeing
awarded Arconic new business for the supply of structural plate
used on a variety of other applications, including wing ribs for
carbon fiber platforms such as the 787 and 777X.
The deal draws on material produced by Arconic’s Very Thick
Plate Stretcher (VTPS), which began commercial production last year
and is capable of stretching the thickest aluminum plate in the
world, used to support composite wings. Combined with its new
horizontal heat treat furnace, which is expected to begin
qualifications in 2019, Arconic is able to offer expanded
capabilities and capacity in thick plate products. One of the
challenges composite wing makers face as the wings get larger is
maintaining their structural strength and stiffness. Aluminum plate
from Arconic’s stretcher enables aircraft manufacturers to address
that issue. As a result, demand for thick aluminum plate is
growing, particularly as larger composite wings, made with
monolithic thick plate wing ribs, increases.
Under this agreement, the companies will also continue to
collaborate on new, high-strength and corrosion-resistant alloys,
including aluminum-lithium that could be used for complex
structural applications.
Arconic’s aerospace business, which had revenues totaling more
than $5 billion in 2017, holds leading market positions in
aerospace sheet and plate produced by its Global Rolled Products
(GRP) business and in aerospace forgings, extrusions, jet engine
airfoils, structural castings and fastening systems produced by its
Engineered Products and Solutions (EP&S) business.
About Arconic
Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we
solve complex engineering challenges to transform the way we fly,
drive, build and power. Through the ingenuity of our people and
cutting-edge advanced manufacturing techniques, we deliver these
products at a quality and efficiency that ensure customer success
and shareholder value. For more information: www.arconic.com.
Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and
YouTube.
Dissemination of Company Information
Arconic intends to make future announcements regarding Company
developments and financial performance through its website at
www.arconic.com.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as “anticipates,” “believes,” “could,” “estimates,”
“expects,” “forecasts,” “guidance,” “goal,” “intends,” “may,”
“outlook,” “plans,” “projects,” “seeks,” “sees,” “should,”
“targets,” “will,” “would,” or other words of similar meaning. All
statements that reflect Arconic’s expectations, assumptions or
projections about the future, other than statements of historical
fact, are forward-looking statements, including, without
limitation, statements regarding demand for thick aluminum plate.
Forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties, and changes in
circumstances that are difficult to predict. It is possible that
actual results may differ materially from those indicated by these
forward-looking statements due to a variety of risks and
uncertainties, including, but not limited to, deterioration in
global economic and financial market conditions generally, and
unfavorable changes in the aerospace market. Market projections are
subject to the risks discussed above and other risks in the market.
Arconic disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180716005294/en/
Investor Contact:Patricia Figueroa,
212-836-2758Patricia.figueroa@arconic.comorMedia
Contact:Lori Lecker, 412-553-3186Lori.Lecker@arconic.com
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