Arconic Signs Its Largest Multiyear Supply Contract With Boeing
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.
Investor Contact:
Patricia Figueroa, 212-836-2758
Patricia.figueroa@arconic.com
or
Media Contact:
Lori Lecker, 412-553-3186
Lori.Lecker@arconic.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180716005294/en/