Plant Doubles Capacity in La Porte, Meeting Growing Demand from Aerospace Engine Manufacturers
NEW YORK & LA PORTE, Ind.--(BUSINESS WIRE)--Lightweight metals leader Alcoa (NYSE: AA) today 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.”
Alcoa in Indiana
Alcoa employs approximately 3,200 people at three locations in Indiana.
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.
These investments support Alcoa’s strategy to build the value-add business for profitable growth and greater innovation in the aerospace market. As reported on October 8, the Company expects robust global aerospace sales growth of 8 to 9 percent in 2015.
Additional resources: Go to www.alcoa.com/laporte for more information, photos and b-roll.
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 more than 60,000 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.
This press release contains statements about future events and expectations, or “forward-looking statements,” all of which are inherently uncertain. Forward-looking statements include those containing such words as “estimates,” “expects,” “plans,” “should,” “may,” “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, forecasts regarding global aerospace sales growth, and expected benefits of Alcoa’s acquisitions and investments growing its multi-material aerospace business, including the expansion of the La Porte, Indiana facility. Forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance. 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 the markets served by Alcoa, including the aerospace market; (b) failure to realize expected benefits from new technologies, processes, or equipment; innovative products; advanced alloys; acquisitions; or expanded facilities, including the La Porte facility, whether due to competitive developments, changes in the regulatory environment, failure to meet customer specifications, or other factors; and (c) 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.