Alcoa in $1.1 Billion Jet Engine Deal with Pratt & Whitney

NEW YORK – U.S. aluminum giant Alcoa (IW 500/53) (AA) on Monday announced a $1.1 billion deal to supply jet engine parts to Pratt & Whitney, including the world's first lightweight aluminum alloy fan blade.

Alcoa said in a statement it had developed the forging for the new aluminum fan blade for Pratt & Whitney's PurePower engines, using an advanced aluminum alloy and a proprietary manufacturing process.

The New York-based company is also developing for the PurePower engines a fan blade forging using its most advanced aluminum-lithium alloy.

"We're going where no materials scientist has gone before," said Alcoa chairman and chief executive Klaus Kleinfeld. "Combining Alcoa's proprietary alloys and unique manufacturing processes with Pratt & Whitney's design, we cracked the code on forging an aluminum fan blade that is lighter and enables better fuel efficiency."

Under the 10-year supply deal, Alcoa will provide a range of other advanced engine products, including vanes and structural castings.

The agreement with Pratt & Whitney, a division of United Technologies Corporation (IW 500/19) (UTX), marked another step in Alcoa's strategy to build its value-added businesses, especially in aerospace.

In late June, the company said it stuck a deal to acquire Firth Rixson, a leading British manufacturer of jet engine components, for $2.85 billion.

Alcoa shares were up 0.8% at $16.10 and United Technologies climbed 0.7% to $114.95 in afternoon trade.

Copyright Agence France-Presse, 2014