Alcoa

Alcoa (9)

Lightweight metals leader Alcoa (NYSE: AA) officially opened its state-of-the-art jet engine parts facility in La Porte, Indiana. The facility doubles Alcoa’s capacity in La Porte and provides new capabilities that broaden its reach in engines for large commercial aircraft. The new plant will meet increasing demand from makers of best-selling jet engines, growing Alcoa’s value-add business in aerospace.

Innovation is at the heart of the La Porte expansion,” said Alcoa Chairman and CEO Klaus Kleinfeld. “We combined some of the world’s best metallurgists, product engineers and manufacturing experts to broaden our capabilities and deliver the highly advanced components our customers need to build jet engines at high volumes.”

The approximately $100 million, 320,000-square-foot expansion, announced last year, enables Alcoa to manufacture single piece structural parts—components that encase the rotating parts of an engine—that are nearly 60 percent larger than those already produced in La Porte. These new capabilities have broadened Alcoa’s reach into wide- and narrow-body aircraft engines. As an example, the new facility will supply structural components for the PurePower® and other engines under a 10-year, $1.1 billion contract with Pratt & Whitney announced last year. The La Porte facility also is partnering with other major aerospace engine manufacturers and their partners to supply parts for next-generation engine programs.

The facility employs the latest in high-tech, advanced manufacturing equipment, including digital x-ray and blue light technology for enhanced quality assurance. It also 3D-prints resin patterns for metallic prototypes and uses automated casting furnaces with advanced controls to meet precise product specifications.

The plant grows Alcoa’s value-add business in the soaring aerospace market and complements Alcoa’s acquisition of TITAL, which established titanium structural casting capabilities in Europe, and expanded its aluminium casting capacity. Alcoa is the world leader in jet engine blades and vanes, and through the La Porte expansion and TITAL acquisition, is becoming a leader in structural parts.

Indiana Lieutenant Governor Sue Ellspermann and other state and local dignitaries today are joining Alcoa executives, employees and aerospace customers to celebrate the opening of the plant which will create 329 jobs by 2019. The facility has already added 155 of those positions.

“Alcoa is building on our state’s advanced manufacturing leadership, as well as providing increased opportunities for high quality careers for our community,” said Indiana Lt. Gov. Sue Ellspermann. “Alcoa is one of several aerospace companies choosing to expand in the Hoosier State, together announcing plans to invest more than $900 million and create more than 1,200 new jobs in the coming years.”

The Indiana Economic Development Corporation has offered Alcoa up to $4 million in conditional tax credits based on the Company’s job creation plans. In addition, the city of La Porte has approved tax incentives worth $7.1 million over a 10-year period.

“The City of La Porte is proud to celebrate this plant expansion with the Alcoa Team,” said La Porte Mayor Blair Milo. “This advanced facility grows our partnership with Alcoa and creates advanced manufacturing job opportunities for our community. We are excited to build on our partnership with Alcoa as it continues to enjoy growth and success.”

This is Alcoa’s second plant opening in Indiana in just over a year. In October 2014, the Company announced the opening of its $90 million greenfield state-of-the-art aluminum-lithium facility—the largest in the world—in Lafayette, Indiana. The Lafayette cast house can produce more than 20,000 metric tons (44 million pounds) of aluminum-lithium annually. Aircraft manufacturers are increasingly turning to lighter and stronger aluminum-lithium alloys, which are less expensive than composites and enable increased fuel efficiency and lower maintenance costs.

Alcoa has been growing its multi-material aerospace business to capture growth in the global aerospace market in support of its broader transformation, and has become a leader in jet engine components and aircraft structures. Alcoa acquired global titanium leader RTI International Metals, aerospace components manufacturer TITAL and global jet engine parts leader Firth Rixson. On a pro forma basis, Alcoa’s 2014 aerospace revenues reached $5.6 billion following these acquisitions, making it one of the world’s largest aerospace parts manufacturers.

Alcoa also has grown organically. It opened the world’s largest aluminum-lithium facility in Lafayette, Indiana, launched expansions to increase jet engine parts production in La Porte, Indiana and Hampton, Virginia, began installation of advanced aerospace plate manufacturing capabilities in Davenport, Iowa, announced plans to double its coatings capabilities for jet engine components in Whitehall, Michigan, announced an investment in technology that strengthens the metallic structures of traditional and additive manufactured parts in Whitehall, Michigan and announced plans to expand its R&D center in Pittsburgh, Pennsylvania to accelerate the development of advanced 3D-printing materials and processes.

For more information, visit: www.alcoa.com/laporte

Alcoa (NYSE: AA) announced that it has completed the acquisition of RTI International Metals, Inc. (NYSE: RTI), a global leader in titanium and specialty metal products and services for the aerospace, defense, energy and medical device markets.

With RTI, Alcoa expands its reach into titanium—the world’s fastest-growing aerospace metal—and adds advanced technologies and materials capabilities for greater innovation power in aerospace and beyond.

“Today, Alcoa takes its multi-material aerospace portfolio to greater heights than ever before,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “By combining the talent and advanced technology of RTI and Alcoa, we significantly increase Alcoa’s aerospace market reach. Through this and our other investments and innovations, we are positioning the Company to capture even more profitable growth and create greater sustainable value for our customers, employees and shareholders.”

RTI is being integrated as a standalone business unit into Alcoa’s downstream Engineered Products and Solutions (EPS) segment. The new business unit, called Alcoa Titanium & Engineered Products (ATEP), will be led by Eric Roegner who has been named President of ATEP, effectively immediately. In addition, Roegner continues as Chief Operating Officer of Engineered Products and Solutions with responsibility for ATEP and Alcoa Power and Propulsion, and President of Alcoa Defense.

RTI’s titanium operations span midstream processes such as melting, ingot casting, bloom, billet, plate and sheet production; and downstream extrusions for aerospace, oil and gas applications, high speed machining, and production of integrated sub-assemblies primarily for aerospace. These capabilities complement Alcoa’s titanium investment casting and forging capabilities, and enable a value-creating closed titanium scrap loop.

RTI’s advanced manufacturing and materials technologies, such as high-velocity machining, forming, extruding and parts assembly operations, enable Alcoa to produce some of the largest, most complex and finished aerospace components. RTI expands Alcoa’s additive manufacturing capabilities to produce 3D-printed titanium, specialty metals and plastic parts for aerospace, medical and energy applications. RTI also grows Alcoa’s portfolio of cutting-edge materials, including titanium aluminides, increasingly used to manufacture lightweight, aerodynamic jet engine parts for next-generation jet engines.

For more information, visit: www.alcoa.com/titanium_and_engineered_products/en/info_page/home.asp

Alcoa (NYSE:AA) is investing $22 million in Hot Isostatic Pressing (HIP) technology at its facility in Whitehall, Michigan. The investment will enable Alcoa to capture growing demand for advanced titanium, nickel and 3D-printed parts for the world’s bestselling jet engines.

“As aerospace growth soars, Alcoa continues to invest in the latest technologies, creating added capacity to capture fast-growing demand,” said Olivier Jarrault, Executive Vice President and Alcoa Group President, Engineered Products and Solutions. “Combined with our expansions in LaPorte, Indiana and Hampton, Virginia and our growing 3D printing capabilities, this investment will give Alcoa the broadest capabilities to deliver high-quality titanium, nickel and 3D-printed parts for the world’s bestselling jet engines.”

HIP involves the simultaneous application of high pressure and temperatures to significantly improve the mechanical properties and quality of cast products, such as blades and structures for jet engines. In addition, the process increases the density of 3D-printed parts made using powdered metals, improving product consistency, strength and lifespan. All titanium, 3D-printed and some nickel parts used for jet engines must be treated using the HIP process.

Alcoa already owns and operates one of the world’s largest HIP technology complexes for aerospace. This investment will expand Alcoa’s capabilities even further, enabling it to process its largest jet engine parts in-house. Through expansions in LaPorte, Indiana and Hampton, Virginia, and by expanding its 3D printing capabilities, Alcoa is extending its product range for next generation narrow- and wide-body aircraft engines, increasing its need for HIP capabilities. With this investment, Alcoa will be able to process any cast jet engine product in its current portfolio.

Alcoa is installing this new technology at its Alcoa Power and Propulsion facility in Whitehall, Michigan and expects it will be ready for product qualification in 2016. Alcoa’s eight other HIP production systems are also located in Whitehall, where it has a concentration of engineering and technical resources. Alcoa pioneered this technology in the aviation industry in 1973, and moved its first unit from Battelle Laboratory to Whitehall in 1975.

Demonstrating its support for the expansion, the City of Whitehall has approved a 12-year Industrial Facilities Tax Exemption valued at over $1,000,000.

This investment supports Alcoa’s strategy to build its value-add business for profitable growth and greater innovation in the aerospace market. The Company expects robust global aerospace sales growth of 9 to 10 percent in 2015 driven by strong deliveries across the large commercial aircraft, regional jet and business jet segments and sees a current 9-year production order book at 2014 delivery rates. Alcoa Power and Propulsion is expected to generate $2.2 billion in revenues by 2016 as a result of its organic growth expansions.

Alcoa (NYSE:AA) today announced the first commercial success of its ColorKast™ technology in the consumer electronics market. As a result of this innovative technology, Alcoa can produce color anodizable aluminum die cast components with high-end cosmetics. The first use of the ColorKast™ technology appears on Samsung’s new digital camera NX210 and other consumer electronic OEMs are preparing to apply this technology to their products.

ColorKast™ is a breakthrough aluminum die casting technology that allows consumer electronics manufacturers to create cosmetically high-end, lightweight, and cost-effective components for portable electronic devices using proprietary alloy, process, and finishing technologies developed at Alcoa Technical Center. The result is cosmetic 3D products with the rich, metallic “look and feel” of anodized aluminum, and the high productivity and cost advantages of die castings as compared to unibody machining processing or magnesium die casting. In addition, products made from ColorKast™ create a better green solution relative to plastics or composites because aluminum is infinitely recyclable.

The performance and aesthetic requirements of ColorKast™ have been validated with Alcoa’s exclusive manufacturing partner, GK (Global Kwangsung) in South Korea, before being introduced to the market, leading to the success of the first commercialized application at Samsung.

For more information, visit: www.alcoa.com/con_electronics

Alcoa's Kawneer business and The American Institute of Architecture Students (AIAS) announce today the Enlightening Libraries: Student Design Competition. Sponsored by Kawneer and administered by the AIAS, this competition will challenge students to redesign a dated public library that is an effectively urbanized, collaborative community space appealing to all generations and integrating the most recent technologies. Total prize money is $7,750, including $3,000 for the first place winning design team.

The competition, now in its seventh year, challenges students to learn about building materials and techniques, specifically architectural aluminum building products and systems, while demonstrating an understanding of sustainable design. Participants are required to integrate a variety of Kawneer products, from entrances and framing systems to windows and curtain wall systems as they relate to efficient community spaces, to develop a new-age library that embraces an atmosphere of enlightenment and learning.

A jury of four architectural professionals will evaluate submissions based on ingenuity and originality as well as design clarity and the ability to create an aesthetic that compliments the community and environment. Appropriate use of materials, including light shelves and sunshades that enhance natural light, will be key factors in the evaluation and selection of winning designs.

Developed to engage architecture and design students from schools worldwide, contest submissions can be the work of an individual or a group of up to four students. Students interested in participating in the competition must register no later than October 14, 2012. Submissions must be made digitally via the competition website on or before November 29, 2012. Winning entries will be published in the Spring 2012 issue of Crit, Journal of the AIAS and will be on display at the 2013 AIA Convention and Design Exposition in Denver, Colorado, June 2013.

For more information or to register, visit: kawneer.aias.org

Alcoa and Alcoa Foundation announced two commitments to prepare U.S. workers for manufacturing jobs and to increase the energy efficiency of its operations today at the 2011 Clinton Global Initiative Annual Meeting, a convening of global leaders founded by President Bill Clinton.

The first commitment is a $200,000 Alcoa Foundation investment to fund eight training programs in California, Ohio, Pennsylvania, Tennessee and Texas that will prepare almost 900 adults for current and future manufacturing jobs. Each training program will address its community’s local job demands, from a machinist training program in Southern California, to an industrial maintenance technology program in Tennessee. Alcoa will also provide the programs with insight into industry needs, program curriculum and provide work experience for students.

Secondly, Alcoa has joined President Obama’s “Better Buildings, Better Plants Challenge” to improve energy efficiency in commercial and industrial buildings across the country. Alcoa is implementing an enterprise-wide energy reduction initiative to decrease energy use in its Global Primary Products division by 10 percent and its other businesses by 20 percent by 2020. This initiative includes a recently announced $21 million investment in new technology and facilities for the Alcoa Wheel and Transportation Products business in Barberton, Ohio.

“Education and innovation are critical to America’s growth,” said Klaus Kleinfeld, Chairman and CEO, Alcoa. “We’re pleased to equip Americans with the technical skills to help them get back to work and invest in innovation that will make our manufacturing processes and facilities greener.”

Preparing workers for manufacturing jobs

Approximately 2.7 million manufacturing workers are over 55 years old and will be retiring in the next 10 years. As a result, the demand for skilled labor in manufacturing will continue to increase, but there’s a risk that many of these jobs could remain vacant because workers lack the necessary skills to qualify for these positions.

To proactively address this skills gap, Alcoa Foundation is working with community colleges and academic institutions to develop or expand trade-based training programs. It is focusing on counties within five states that have high unemployment and a demand for skilled manufacturing labor. This two-prong approach addresses the needs of local workers and employers to ensure that students are trained for available positions.

Better Buildings, Better Plants Challenge

Alcoa has been committed to energy reduction for many years. Joining the “Better Building, Better Plants Challenge” is an opportunity to enhance this priority. Alcoa’s enterprise-wide energy reduction initiative includes a $21 million investment to expand the Barberton, Ohio facility. The plan involves constructing a new 35,000 square foot building, designed to be LEED certified, that will use an advanced recycling and casting process to produce new wheels from re-melted and scrap aluminum. This building is the first of its kind in North America and will reduce energy consumption and greenhouse gas emissions.

In addition to improving the energy efficiency of the manufacturing process and providing more eco-friendly products such as lighter-weight wheels, the Barberton, Ohio investment will also create 30 full-time jobs and help protect more than 350 existing positions.

Alcoa Foundation is one of the largest corporate foundations in the U.S., with assets of approximately US$436 million. Founded more than 50 years ago, Alcoa Foundation has invested more than US$530 million since 1952. In 2010, Alcoa Foundation contributed nearly US$20 million to nonprofit organizations throughout the world, focusing on promoting environmental stewardship, enabling economic and social sustainability, and preparing tomorrow’s leaders through education and learning. The work of Alcoa Foundation is further enhanced by Alcoa’s thousands of employee volunteers, who in 2010 gave more than 720,000 service hours. Through the company’s signature Month of Service (October) program, Alcoa employees share their energy, passion and purpose to make a difference in our communities. In 2010, a record 49 percent of Alcoans took part in nearly 1,000 Month of Service events across 24 countries, reaching 59,000 children, serving 17,000 meals, planting 16,000 trees and supporting 3,000 nonprofit organizations.

For more information, visit: www.alcoa.com/foundation

Alcoa Foundation today announced that in just two months Alcoa (NYSE: AA) employees contributed more than 25,000 hours of their time, the equivalent of three years, to volunteer in communities around the world. Community service projects took place during the Foundation’s Green Works initiative created to support environmental projects and celebrate eco-holidays like Earth Day, World Environment Day and Arbor Day.

Through more than 135 events across 20 countries, more than 35.6 million community members benefited from Alcoa employees sharing their time, talents and energy to help protect the Earth.

Highlights include:

* More than 12,000 trees planted to support Alcoa’s Ten Million Trees campaign
* 115 rivers, parks and recreation areas rehabilitated to improve the environment
* More than 35,500 pounds of electronics recycled preventing toxic materials from entering landfills
* 1,060 recycling bins distributed to encourage recycling aluminum cans
* 60 environmental workshops on climate change, water conservation, recycling and other environmental issues

”Imagine Your World” Art Contest

In addition to community service events, Green Works also included the “Imagine Your World” art contest for children of Alcoa employees. Children created original artwork depicting their vision of tomorrow’s natural environment. Eight young winners will each receive a US$5,000 Alcoa Foundation grant for their school or a school in an underserved area in their community. Winners, ranging from 4- to 16-years-old, hail from Australia, Canada, Europe, South America, Russia and the U.S. Presentations will be made during the school year. The winning art was selected by a panel of judges, including Klaus Kleinfeld, Alcoa Chairman and CEO, and Alcoa Foundation nonprofit partners. The winning art and artists can be viewed here.

“Sustainability is at the heart of everything we do at Alcoa,” said Paula Davis, President, Alcoa Foundation. “Green Works helped strengthen our commitment to our environment, and got our employees and their families involved in greening their communities.”

Alcoa Foundation is one of the largest corporate foundations in the U.S., with assets of approximately US$436 million. Founded more than 50 years ago, Alcoa Foundation has invested more than US$530 million since 1952. In 2010, Alcoa Foundation contributed nearly US$20 million to nonprofit organizations throughout the world, focusing on promoting environmental stewardship, enabling economic and social sustainability, and preparing tomorrow’s leaders through education and learning. The work of Alcoa Foundation is further enhanced by Alcoa’s thousands of employee volunteers, who in 2010 gave more than 720,000 service hours. Through the company’s signature Month of Service (October) program, Alcoa employees share their energy, passion and purpose to make a difference in our communities. In 2010, a record 49 percent of Alcoans took part in nearly 1,000 Month of Service events across 24 countries, reaching 59,000 children, serving 17,000 meals, planting 16,000 trees and supporting 3,000 nonprofit organizations.

For more information, visit: www.alcoa.com/foundation

Alcoa (NYSE:AA) announced today that U.S. President Barack Obama will tour its Davenport, Iowa, facility, one of the most advanced manufacturing plants in the world, on Tuesday June 28. Originally opened in 1948, the plant employs 2,000 people, and is a focal point of the global aluminum industry, generating approximately 25 percent of its revenues through exports.

Davenport is the manufacturing hub of Alcoa’s $3 billion aerospace business and the world’s premier aerospace supply plant, producing high-tech alloys and wings for all major aircraft, including Airbus' A380, the world’s largest passenger plane, and Boeing's 747-8 and 777.

“It is a true honor that President Obama has chosen to visit Alcoa in Davenport, a great example of the high technical capabilities and innovation that makes U.S. manufacturing strong,” said Alcoa Chairman and CEO Klaus Kleinfeld.

Alcoa is at the forefront of American innovation, having developed 95 percent of all aerospace alloys ever created. This tradition continues to this day, as Davenport will soon begin manufacturing with the company’s newest aviation breakthrough, third-generation aluminum lithium alloys that make planes lighter, corrosion resistant, and more cost effective to manufacture.

In addition to aerospace, Alcoa Davenport also provides armor to the defense market, lightweight solutions to the automotive sector, and aluminum sheet for a wide-range of industrial uses.

“We have more jobs in Davenport today than before the crisis as we capture growing global demand for innovative products. We welcome the opportunity to share with the President our American manufacturing success story,” Kleinfeld added.

About Alcoa Davenport

Opened in 1948, Alcoa Davenport is situated on the Mississippi River, about seven miles from downtown Davenport, Iowa. The plant employs 2,000 people in high-tech aluminum sheet and plate manufacturing for the aerospace, defense, automotive and building and construction markets, and last year delivered revenues of $800 million. Alcoa has invested more than $200 million over the past decade to maintain Davenport’s position as the world’s premier aerospace supply plant. Davenport remains the only facility that can manufacture airplane wings as a monolithic structure, delivering enhanced structural integrity and lighter weight aircraft, and today produces wings for almost all planes made by Airbus, Boeing, Bombardier and Embraer. The plant also produces unique armor products for the U.S. military, including the Humvee and MRAP, and delivers automotive solutions that are enabling lighter, more fuel efficient automotive vehicles. Alcoa Davenport is at the forefront of sustainability leadership, and recently became home to a pair of American Bald Eagles and their baby – Freedom – whose progress has been followed by hundreds of thousands via live webcam - www.alcoa.com/eaglecam.

For more information visit: www.alcoa.com/davenport

Alcoa (NYSE:AA) today announced plans to restart idled potlines at three aluminum smelters in the United States, creating approximately 260 new jobs through recall and hiring. The restarted facilities will increase Alcoa’s aluminum production by 137,000 metric tons over the course of 2011 and by 200,000 metric tons on an annual basis thereafter. The restarts allow Alcoa to take advantage of long-term, low-cost power options that will continue to move Alcoa down on the aluminum cost curve and improve overall competitiveness.

Capacity will be restarted at the Massena East facility in Massena, NY; Wenatchee Works in Malaga, WA; and Intalco in Ferndale, WA. The restarts are occurring now to help Alcoa meet anticipated growth in aluminum demand and to meet obligations outlined in power agreements with energy providers.

“We compete in a global economy and power is a major cost in our operations,” said John Thuestad, Executive Vice President and Group President of Alcoa Primary Products. “Thanks to continued partnerships with our energy providers and government officials, we have been able to secure our power needs to meet future demand, improve Alcoa’s competitive position and provide this positive economic impact.”

Power rates at Wenatchee and Massena, where long-term contracts have been secured, are about 40% below worldwide averages. Intalco is operating under its current 17-month contract. All the restarts will be powered by sustainable, renewable hydropower and will be free-cash-flow and earnings accretive in the first year.

“We are pleased to bring jobs back and increase our economic impact in each of these communities,” said Bob Wilt, President of Alcoa’s U.S. Primary Products. “Alcoa’s decisive response to the economic downturn and favorable power rates have put us in a position to take this action. We believe this additional capacity will be absorbed in the market as Alcoa meets rising demand for light, strong and recyclable aluminum from customers around the world.”

Restarting one potline at Wenatchee ensures Alcoa will meet the requirements of a new contract with the Chelan County Public Utility District. The new 17-year hydropower contract goes into effect in November, 2011 and provides enough energy for increased production of 42,000 metric tons annually, bringing another 80 new jobs to the region.

At Massena East, a new agreement with the New York Power Authority allows three potlines to restart and preserves the company’s ability to modernize the plant in the future. It replaces an agreement that was set to expire in April, 2011. The restart will provide about 120 new jobs through recall or hiring, and secures the future of a total of approximately 385 jobs that support Massena East.

Intalco is currently operating under a 17-month contract with the Bonneville Power Administration (BPA) that provides 320 megawatts of power at the Industrial Power rate. The restarts will bring about 60 new jobs to the region while negotiations on a long-term contract with BPA continue.

“We are grateful for the support we’ve received from our energy partners and federal, state and local officials throughout this process,” said Wilt. “It’s through their help, and the ongoing support of our employees and communities, that these restarts are possible.”

The restarts should be completed during the first half of 2011. Once these restarts are complete, Alcoa will have 674,000 metric tons of idle capacity remaining.

About Alcoa

Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 59,000 people in 31 countries across the world. More information can be found at www.alcoa.com

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