Customer-backed investment enables aerospace industry’s largest high-strength monolithic wing ribs, design freedom for OEMs

Arconic (NYSE: ARNC) announced today that the installation of its new
manufacturing technology – the Very Thick Plate Stretcher (Stretcher) –
is complete. The Stretcher produces highly-differentiated aerospace and
industrial plate. The investment in the Stretcher is backed by customer
contracts, including one with Airbus,
valued at approximately $1 billion. The project was completed on time
with an investment of approximately $150 million, approximately $40
million under budget.

Located at the company’s facility in Davenport, Iowa, the Stretcher
improves the performance of thick aluminum and aluminum-lithium plate in
aerospace and industrial applications. The stretching process reduces
stress introduced into the plate as part of the manufacturing process,
resulting in a part that is more easily machined and processed by
customers.

In aerospace, the Stretcher will not only enable Arconic to service the
existing plate market, but also allow airframe builders to make large
wing ribs, fuselage frames and bulkheads in new sizes and thickness. For
example, one of the challenges composite wings face as they get larger
is strength and stiffness, and the aluminum plate from this Stretcher
will allow aircraft manufacturers to make aluminum wing ribs to address
that issue. In the industrial market, plate from the Stretcher can be
used in manufacturing molds and chambers for applications such as
semiconductors.

“This investment was made to expand Arconic’s leadership in the
aerospace market and create profitable growth in attractive industrial
markets,” said Arconic Chairman and Chief Executive Officer Klaus
Kleinfeld. “The Stretcher allows Arconic to offer a variety of new
products: in aerospace, we can now help aircraft engineers push the
boundaries of design and performance. In other industrial applications,
such as semiconductors and consumer electronics, Stretcher material
helps increase productivity and reduce cost. In both cases, Arconic will
help create demand that we are uniquely positioned to meet. And making
all of this possible is our team in Davenport, who delivered this
massive project on time and $40 million under budget.”

Arconic’s Davenport facility is currently commissioning the Stretcher,
and has begun qualifying material for its customers.

Aerospace Applications

In aerospace, the Stretcher material offers Arconic customers more
design freedom and increased productivity. In addition to enabling the
production of the largest high-strength monolithic wing ribs in the
industry, the material from the Stretcher will also allow aerospace
engineers to design aircraft in new ways, because plate of this size and
scale is currently not available on the market. For example, Arconic’s
Stretcher material allows airframers to create single-piece parts, which
eliminates the need to join multiple pieces together, resulting in
better production efficiency and lower weight.

Product shipments to aerospace customers are expected to begin in the
fourth quarter of 2017.

Airbus was the first aerospace customer to include material from the new
Stretcher in the $1 billion contract announced
last year. Stretcher material is also a part of an agreement Arconic has
with AMI Metals to support their contract with Lockheed Martin for
production of the Joint Strike Fighter.

Industrial Applications

The Stretcher can be used to make some of the thickest, longest and
widest plate for plastics manufacturing molds and on manufacturing
chambers for the consumer electronics and semiconductor industries. For
example, semiconductor manufacturers can use the thicker plate to
increase the size of their manufacturing chambers, allowing them to make
larger and/or more chips in the same amount of time, increasing
productivity and saving cost.

Product shipments to industrial customers are expected to begin in the
second quarter of 2017.

About Arconic

Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we solve
complex engineering challenges to transform the way we fly, drive, build
and power. Through the ingenuity of our people and cutting-edge advanced
manufacturing techniques, we deliver these products at a quality and
efficiency that ensure customer success and shareholder value. For more
information: www.arconic.com.
Follow @arconic: Twitter,
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Dissemination of Company Information

Arconic intends to make future announcements regarding Company
developments and financial performance through its website at www.arconic.com.

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,” “may,” “plans,” “projects,”
“should,” “will,” “would,” or other words of similar meaning. All
statements that reflect Arconic’s expectations, assumptions or
projections about the future, other than statements of historical fact,
are forward-looking statements, including, without limitation,
projections of competitive position, market share, growth opportunities,
revenues or other financial items of Arconic; and projections regarding
the Stretcher shipments. Forward-looking statements are not guarantees
of future performance and are subject to risks, uncertainties, and
changes in circumstances that are difficult to predict. Although Arconic
believes that the expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no assurance
that these expectations will be attained and it is possible that actual
results may differ materially from those indicated by these
forward-looking statements due to a variety of risks and uncertainties.
Such risks and uncertainties include, but are not limited to: (a)
deterioration in global economic and financial market conditions
generally; (b) unfavorable changes in the markets served by Arconic,
including the aerospace market; and (c) the other risk factors discussed
in Arconic’s Form 10-K for the year ended December 31, 2016, and other
reports filed with the U.S. Securities and Exchange Commission. Arconic
disclaims any obligation to update publicly any forward-looking
statements, whether in response to new information, future events or
otherwise, except as required by applicable law. Market projections are
subject to the risks discussed above and other risks in the market.

Arconic
Investor Contact
Patricia Figueroa, 212-836-2758
Patricia.Figueroa@arconic.com
or
Media Contact
Lori Lecker, 412-553-3186
Lori.Lecker@arconic.com