NEW YORK & MOSCOW - Alcoa, a supplier of aluminum solutions to the world's aerospace industry, and Russia’s VSMPO-AVISMA Corporation, a manufacturer of titanium ingots and forged products, have agreed to join forces to meet growing demand for high-end titanium and aluminum products for aircraft manufacturers worldwide.
Alcoa Chairman and CEO Klaus Kleinfeld and VSMPO Chairman Sergei Chemezov signed a cooperation agreement at a ceremony in Moscow, marking the first step in forming a new joint venture company to meet growing demand for high-end titanium and aluminum products for aircraft manufacturers worldwide.
Alcoa Chairman and CEO Klaus Kleinfeld and VSMPO-AVISMA Chairman Sergei Chemezov signed a cooperation agreement at a ceremony in Moscow, marking the first step in forming a new joint venture. Once formed, the joint venture will combine Alcoa’s expertise in manufacturing value-add products with VSMPO-AVISMA’s global leadership in titanium production to manufacture high-end aerospace goods, such as landing gear and forged wing components, at Alcoa’s plant in Samara.
"The agreement marks an important step in leveraging Alcoa’s and VSMPO-AVISMA’s strengths in innovation and manufacturing to capture opportunities in the high-growth aerospace market," said Alcoa Chairman and CEO Klaus Kleinfeld. "This alliance will enhance Alcoa’s competitiveness and position our global aerospace business for continued profitable growth.”
“We actively collaborate with global industrial leaders to implement large-scale projects. Our partnership with Alcoa will help increase our productivity, expand our offerings to customers, and help VSMPO-AVISMA move forward on our strategy to increase the share of our value-add products,” said Sergei Chemezov, Chairman of the Board of Directors, PSC VSMPO-AVISMA and Head of Rostec Corporation.
Mikhail Voevodin , General Director, PSC VSMPO-AVISMA Corporation, said, “This agreement will add to our current manufacturing capabilities, as the company gets access to unique forging equipment. This step enables us to increase our output and ensure the consistency of supply, allowing us to meet growing demand for our products from leading global aircraft manufacturers.”
"This manufacturing partnership will expand on our mutual and complementary strengths in making the largest and most advanced aerospace forgings in the world,” said Eric Roegner, Chief Operating Officer of Alcoa Investment Castings, Forgings and Extrusions.
The joint venture, which is expected to be operational in 2016, will capture opportunities in the global aerospace market. Based on Alcoa’s estimates as of October 8, 2013, the aerospace market is expected to grow by 9-10 percent in 2013.
Additional terms of the transaction were not disclosed.