Will Increase Capacity to Make Larger, High-Quality Titanium, Nickel and 3D-Printed Components
- Alcoa investing $22 million in Michigan for latest Hot Isostatic Pressing (HIP) technology, which strengthens the metallic structure of titanium, nickel and 3D-printed jet engine parts
- Alcoa’s newest and largest HIP production system will give it in-house capabilities to treat larger parts for the world’s top-selling jet engines
- Growing aerospace demand, combined with increased output from Alcoa’s expansions in LaPorte, Indiana and Hampton, Virginia and advanced 3D printing capabilities, driving need for more HIP capacity
- Alcoa owns and operates one of world’s largest HIP technology complexes in aerospace, having pioneered its use for aerospace in 1973
Lightweight, high-performance metals leader 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. Steep ramp-up rates for narrow- and
wide-body aircraft engines—the top-selling jet engines in the world—are
increasing Alcoa’s need for such capabilities.
“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.
Editor’s Note: Caption for accompanying photo: Alcoa is investing
$22 million in Whitehall, Michigan for Hot Isostatic Pressing (HIP)
technology which strengthens the metallic structure of titanium, nickel
and 3D-printed jet engine parts.
About Alcoa Power and Propulsion
Alcoa Power and Propulsion, a major business unit of Alcoa, is the
number one supplier of nickel-based superalloy airfoils for jet engine
and industrial gas turbine applications. It is also a leading supplier
of structural castings made of titanium, aluminum and superalloys for
aero engines and airframes. Additional value-add products and services
include additive manufacturing, vacuum melted alloys, advanced airfoil
coatings and machining, hot isostatic pressing and research and
development. With 20 global production facilities, Alcoa Power and
Propulsion employs more than 9,500 people worldwide.
About Alcoa
A global leader in lightweight metals technology, 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 59,000 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.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include those containing such words as “estimates,”
“expects,” “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 the benefits of Alcoa’s advancements in
aerospace technology; the expected timing for product qualification of
Hot Isostatic Pressing technology at the Alcoa Power and Propulsion
facility in Whitehall, Michigan; forecasts concerning demand growth in
the commercial aerospace sector; and statements regarding Alcoa’s
strategies, outlook, and business and financial prospects.
Forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties, and changes in circumstances that
are difficult to predict. Important factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements include: (a) unfavorable changes in general
economic conditions or in the markets served by Alcoa, including the
aerospace market; (b) failure to successfully implement, or to realize
expected benefits from, new technologies, investments, capacity
expansions, or advanced manufacturing processes, including Hot Isostatic
Pressing technology, or other innovative products and solutions, whether
due to competitive developments, changes in the regulatory environment,
trends and developments in the aerospace, metals engineering and
manufacturing sectors, or other factors; (c) Alcoa’s inability to
achieve the level of revenue growth anticipated from its organic growth
expansions in its value-add businesses; and (d) the other risk factors
discussed in Alcoa’s Form 10-K for the year ended December 31, 2014, 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.
Alcoa
Investor Contact
Nahla Azmy, 212-836-2674
Nahla.Azmy@alcoa.com
or
Media Contact
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