NEW YORK & DAVENPORT, Iowa--(BUSINESS WIRE)--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.
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.
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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.