Arconic (NYSE:ARNC) has announced a multi-year contract with Airbus valued at approximately $1 billion.
The contract gives Arconic aluminium sheet and plate an unprecedented position on Airbus’ highest volume programs.
“This large contract is a further important step to expand our leadership position in the aerospace industry," said Klaus Kleinfeld, Chairman and CEO of Arconic. "We are proud that Airbus has chosen us to support their fastest growing, technologically advanced programs. Partnerships like this with industry leaders are core to our strategy and this contract is another proof point of the potential that lies in it. We continue to focus on developing products and technologies that take all of our aerospace customers to new heights.”
This agreement is the first to include material from Arconic’s new state-of-the-art thick plate stretcher in Davenport, Iowa. Arconic’s most significant share gain in the contract is in the A320 family of aircraft, which is Airbus’ highest growth program.
The multi-year agreement starts in January 2017 and makes Arconic sole supplier to Airbus for specific applications, including some wing, fuselage and structural components. In addition to Arconic’s proprietary alloys – chosen for their combination of strength, corrosion resistance, density savings and manufacturability – Airbus planes will feature Arconic plate products on every platform, used in key applications such as wing ribs, fuselage frames and other structural parts of the aircraft.