Innovative Technology Improves Jet Engine Fuel
Efficiency
-
$16.7 million expansion in coating capabilities to
improve performance of blades and vanes in hot
section of bestselling, next-generation jet engines
- Construction to begin this month,
production expected in 2016
- Investment supported by customer
agreements
- Supports Company’s strategy to
grow aerospace business, capture demand for advanced jet
engine parts
Alcoa Power and Propulsion, a unit of lightweight,
high-performance metals leader Alcoa (NYSE: AA), is doubling its
high-technology coating capacity at its Whitehall, Michigan
facility. The $16.7 million investment will position the Company to
further capture growing demand for advanced jet engine parts.
The 7,700 sq. ft. building expansion will be located at the
Company’s Thermatech plant in Whitehall where it produces thermal
coated parts that enable engines to run at higher temperatures,
boosting engine efficiencies. The coating also extends the
operating life of jet engine parts by protecting against oxidation
and corrosion.
“Alcoa is a global leader in the production of airfoil jet
engine components,” said Mike Pepper, President of Alcoa Power and
Propulsion. “This expansion will enable us to continue providing
our high level of service as we meet growing demands for our
high-tech, Thermatech-coated parts that enable enhanced fuel
efficiency.”
Alcoa will install a new electron beam physical vapor deposition
machine to boost capacity, which enables faster production by
combining two important processes: the bond coat and the top coat.
Construction will begin this month, with first production expected
to begin in 2016. The expansion will create 25 new full-time jobs.
Customer agreements underpin the new capacity.
The combination of advanced coatings and internal cooling
schemes make it possible for investment cast airfoils to operate in
an environment that reaches temperatures much greater than the
airfoils’ melting point. In addition to jet engines, the coating
process is applied to parts used to build industrial gas
turbines.
The expansion supports Alcoa’s strategy of profitably growing
its aerospace business, which achieved revenues totaling $4 billion
in 2013 and is in line with Company strategy to build its value-add
businesses to capture profitable growth in high-growth industries.
The Company projects a compounded annual commercial jet growth rate
of 7 percent through 2019 and sees a current 9-year production
order book at 2013 delivery rates.
Demonstrating its support for the expansion, the Michigan
Economic Development Corporation awarded a state business
development grant to Alcoa totaling $285,000.
“As the largest manufacturing company in Muskegon County, Alcoa
continues to be a leader in the aerospace industry and is home to
the most advanced aerospace manufacturing facility in the world,”
said Ed Garner, President & CEO of Muskegon Area First Economic
Development Corp.
About Alcoa Power and Propulsion
Alcoa Power and Propulsion, a major business unit of Alcoa, is a
global leader in superalloy airfoil and titanium and aluminum
structural investment castings. Serving the aerospace, defense,
energy and industrial markets, its products are primarily used in
jet engines and industrial gas turbines. Additional value-added
products and services include additive manufacturing, hot isostatic
pressing, specialty coatings, research and development, supply
chain management, specialty tools, molds, and machinery. With 25
production facilities, Alcoa Power and Propulsion employs more than
9,000 people worldwide.
About Alcoa
A global leader in lightweight metals engineering and
manufacturing, Alcoa innovates multi-material solutions that
advance our world. Our technologies enhance transportation, from
automotive and commercial transport to air and space travel, and
improve industrial and consumer electronics products. We enable
smart buildings, sustainable food and beverage packaging,
high-performance defense vehicles across air, land and sea, deeper
oil and gas drilling and more efficient power generation. We
pioneered the aluminum industry over 125 years ago, and today, our
approximately 62,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For
more information, visit www.alcoa.com, follow @Alcoa on Twitter at
www.twitter.com/Alcoa and follow us on Facebook at
www.facebook.com/Alcoa.
About Michigan Economic Development Corporation
(MEDC)
For more on the MEDC and its initiatives,
visit michiganbusiness.org. For Michigan travel news, updates
and information, visit michigan.org. Michigan residents interested
in seeking employment with any of Michigan’s growing companies
should check mitalent.org, where more than 85,000 jobs are
currently available in a variety of industries.
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,” “estimates,” “expects,” “forecasts,”
“plans,” “projects,” “sees,” “should,” “will,” or other words of
similar meaning. All statements that reflect Alcoa’s expectations,
assumptions or projections about the future other than statements
of historical fact are forward-looking statements, including,
without limitation, statements regarding Alcoa’s strategy,
objectives, expectations, and intentions regarding growing its
aerospace capabilities and business; the improvement in performance
of jet engines achieved by Alcoa’s advanced manufacturing and
process technologies; forecasts concerning demand growth in the
commercial aerospace sector, and the expected timing for completion
of expansion of coating capabilities and first production from such
expansion at Alcoa’s Whitehall, Michigan facility and increase in
employment levels. Forward-looking statements are subject to a
number of known and unknown risks, uncertainties, and other factors
and are not guarantees of future performance. Important factors
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include:
unfavorable changes in the markets served by Alcoa, including the
aerospace market; failure to successfully implement, or to realize
expected benefits from, new technologies, processes, equipment or
innovative products, including innovative technology to improve jet
engine fuel efficiency, whether due to competitive developments,
failure to meet specifications, changes in the regulatory
environment, trends and developments in the aerospace, metals
engineering, and manufacturing sectors, or other factors; and the
other risk factors discussed in Alcoa’s Form 10-K for the year
ended December 31, 2013 and other reports filed with the Securities
and Exchange Commission. Alcoa disclaims any intention or
obligation to update publicly any forward-looking statements,
whether in response to new information, future events or otherwise,
except as required by applicable law.
AlcoaChrista Bowers, +1-212-836-2605Christa.Bowers@alcoa.com
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