Alcoa to Supply Embraer in $470 Million Contract
June 30 2016 - 9:40AM
Dow Jones News
Alcoa Inc. said Thursday that it won a contract to supply
aluminum sheet and plate to Embraer SA in a contract valued at
about $470 million.
The aluminum maker is supplying materials for Embraer's new E2s,
the second generation of its narrow-body medium-range jet airliner,
which are scheduled to enter into service in 2018.
The company said Embraer chose its proprietary alloys due to
their combination of strength, corrosion resistance and fatigue
resistance.
The long-term agreement makes Alcoa Embraer's sole supplier for
proprietary wing skins and fuselage sheets on the E2. Other Alcoa
plate products, like wing ribs, fuselage frames and other
structural parts, are also part of the contract, and will be used
on the E2, Embraer's executive jets and KC-390 military transport
aircraft.
The deal uses the manufacturing capabilities of Alcoa's
rolled-products business from its plants in Davenport, Iowa, and
Kitts Green, U.K.
Alcoa is in the midst of breaking up into two publicly traded
companies in a move to capitalize on growth in the aerospace sector
while insulating its shareholders from flailing commodity
markets.
Alcoa shares were up 0.9% in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
June 30, 2016 09:25 ET (13:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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