Alcoa to Supply Parts to Boeing in $2.5 Billion Dealby
Alcoa Inc., the U.S. aluminum producer that’s planning to separate its manufacturing business from its legacy smelting and refining operations, will supply parts for Boeing Co. aircraft in a multi-year deal worth more than $2.5 billion.
New York-based Alcoa will provide Boeing with titanium, steel, aluminum and nickel-based fastening systems as well as titanium seat-track assemblies for the 787 Dreamliner, it said in a statement Thursday. RTI International Metals Inc., which Alcoa purchased this year, has had supply agreements for the tracks since 2007. The new contract adds the 787-10 series of aircraft. The RTI unit is now known as Alcoa Titanium & Engineered Products.
Alcoa slid 0.4 percent to $9.205 at 2:34 p.m. in New York. The shares slumped 41 percent this year through Wednesday.
Since taking charge in 2008, Chief Executive Officer Klaus Kleinfeld has emphasized products such as parts for cars, airplanes and power plants, while rationalizing a commodity-metals business that was once the world’s largest by volume.
In September, Kleinfeld committed to dividing the company in two after making acquisitions including RTI and the 2014 purchase of U.K.-based Firth Rixson Ltd. and working to streamline Alcoa’s commodity aluminum business.