Alcoa strikes $1 billion parts supply deal with Airbus Group

By  Paul Ploumis 06 Oct 2015  Last updated at  08:44:52 GMT

ALBANY (Scrap Monster): In a big boost to its aerospace business, NY-based Alcoa Inc. has entered into a $1 billion deal with Airbus Group SE. Under the deal, Alcoa will supply bolts and other fasteners made from stainless steel, titanium and nickel-based superalloys for Airbus planes. The contract is considered to be the company’s largest deal with Airbus for aerospace fastening systems.

The fasteners will be manufactured at 14 global aerospace plants. They will be used on most advanced category of aircrafts including the Airbus 350, the A320neo and the A330. The company will supply advanced fastening systems to enhance the assembly of aircraft panels and engine pylons on aircrafts.

The fastener supply contract with Airbus will boost the profits of value-add company. It was during last week that Alcoa had announced its decision to split itself into two entities, thereby enabling to isolate the company’s parts-making units from its raw aluminum operations. The upstream company will take care of the company’s business related to bauxite-mining, alumina-refining, aluminum-production, casting and energy. The value-add company is intended to position itself as the key supplier to both automotive and aerospace industry.

With corporate headquarters in NY City, Alcoa Inc. is the world’s third largest producer of aluminum after Chinalco and Rusal. It is one of the world's largest lightweight metal manufacturers of products made of aluminum, titanium and nickel. Alcoa’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications.