Alcoa 2015 Annual Report Download - page 13

Alcoa’s Value-Add business is a leading provider and
premier innovator of high-performance multi-material
products and solutions. Sixty seven percent of Value-Add’s
2015 third-party revenue was derived from the aerospace,
commercial transportation, building and construction,
automotive and industrial gas turbines end markets. As it
prepares to be a standalone company, the Value-Add business
will continue leveraging signifi cant customer synergies,
technology, talent and procurement across its midstream and
downstream portfolios, positioning itself for further profi table
growth in these fast-growing end markets.
A premier provider of Aerospace products
By building our aerospace business, we advanced our
transformation and in 2015, 38 percent of Value-Add
third-party revenue came from the aerospace market.
Our sheet, plate, structures and multi-material fasteners
cover airplanes from nose to tail and our airfoils, rings
and disks power jet engines.
To broaden our reach in engines for large commercial
aircraft, Alcoa completed the expansions of cutting-edge
jet engine facilities in Hampton, Virginia and La Porte, Indiana.
The La Porte facility enables production of nearly 60 percent
larger structural parts to meet growing demand from aerospace
engine manufacturers. Alcoa will use the advanced
manufacturing capabilities of its facilities, including La Porte,
to fulfi ll a contract signed with GE Aviation in 2015 valued at
more than $1.5 billion. Alcoa will supply advanced nickel-
based superalloy, titanium and aluminum components for
a broad range of GE Aviation engine programs.
In addition to growing by organic means, Alcoa also grew
inorganically, acquiring RTI International Metals (RTI), a global
leader in titanium and specialty metal products and services
for the commercial aerospace, defense, energy and medical
device end markets. With RTI, we broadened our reach into
titanium—the world’s fastest-growing aerospace metal—
and added advanced technologies and materials capabilities
for greater innovation power in aerospace and beyond.
Alcoa also completed the acquisition of TITAL to establish
titanium casting capabilities in Europe, enhance customer
relationships in the region, and expand our aluminum
casting capabilities.
The Value-Add Business
A lightweight multi-material, innovation leader
1. Through Firth Rixson, Alcoa entered into a
highly specialized segment of jet engine
forgings that require isothermal forging
technology. Isothermally forged parts
are increasingly required in jet engines
that use elevated turbine temperatures
to maximize power output, drive fuel
effi ciency and reduce emissions. The
state-of-the art Savannah, Georgia facility
includes a 19,500-ton isothermal press,
shown here.
2. Alcoa announced two multi-year
agreements with Boeing worth more than
$2.5 billion, including Alcoa’s largest-ever
fastener deal. Alcoa secured aerospace
contracts worth approximately $9 billion
in 2015, double the amount in 2014.
Photo courtesy of Boeing
3. Alcoa’s innovative fasteners are made
using a variety of materials, including
titanium, stainless steel and nickel-based
superalloys, which improve fatigue
life, enable lightning strike protection,
and enhance wear and reusability on
conventional and composite aircraft.
Alcoa signed its largest-ever contract
with Airbus worth approximately $1 billion
for high-tech, multi-material aerospace
fastening systems. Alcoa’s fasteners fl y on
every Airbus platform, including new, high-
growth platforms such as the A350 XWB.
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