Alcoa acquires Titanium Casting Company.
Alcoa, Pittsburgh, announced its acquisition of TITAL, a privately held manufacturer of titanium and aluminum structural castings for aircraft engines and airframes. Alcoa closed the transaction, announced December 15, 2014, after receiving all of the required global regulatory approvals.
This acquisition strengthens Alcoa's ability to capture growing demand for advanced aircraft engine components, in particular, those made of titanium. TITAL provides Alcoa with titanium casting capabilities in Europe and expands its overall aluminum casting capacity. Additionally, TITAL's connections to European engine and aircraft manufacturers, such as Airbus, SNECMA and Rolls-Royce, will enhance Alcoa's customer relationships in the region and beyond.
"We are combining two leading, innovation-driven businesses to continue increasing Alcoa's highly differentiated content on the world's best-selling airplanes and jet engines," said Olivier Jarrault, executive vice president, Alcoa. "This transaction supports our strategy of creating a more profitable future by growing our value-add businesses. Through these efforts, Alcoa will continue delivering greater sustainable value for our customers, employees and shareholders."
Almost 70% of TITAL's revenues are expected to come from commercial aerospace sales in 2019. Furthermore, its titanium revenues are expected to increase by 70% over the next five years as jet engine manufacturers turn to titanium for structural components. In 2014, TITAL generated revenues of approximately $100 million, more than half of which came from titanium products.
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|Title Annotation:||INDUSTRY NEWS|
|Date:||Jun 1, 2015|
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