January 11, 2016 / 6:28 AM / 2 years ago

Alcoa gets $1.5 bln supply contract from GE's aviation unit -WSJ

Jan 11 (Reuters) - Alcoa Inc has won a $1.5 billion long-term contract from General Electric’s aviation unit to supply vital components used in making aircraft engines, the Wall Street Journal reported.

The deal, which will be announced along with Alcoa's quarterly results on Monday, will allow the aluminum producer to supply advanced nickel-based superalloy, titanium and aluminum components for engines and parts made by GE, the paper said, citing a GE news release it viewed. (on.wsj.com/1PYYjhA)

Alcoa will make the parts in six U.S. states, as well as in France and Canada, the WSJ reported.

Aluminum production business appears no longer viable in the United States despite U.S. car and plane makers buying more aluminum than ever.

Last week, Alcoa announced plans to close its 269,000 tonne-per-year Warrick smelter, the largest operating smelter in the United States currently, as “these assets are not competitive” amid “challenging market conditions.”

Closure of Warrick smelter will reduce annual U.S. production of aluminum to around 720,000 tonnes, the lowest since at least 1950, according to the U.S. Geological Survey.

Alcoa and GE could not be immediately reached for comment outside regular business hours. (Reporting by Ankush Sharma in Bangalore; Editing by Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below