Alcoa extends Airbus agreement

Alcoa announced today at the Paris Air Show that it has signed a new long-term agreement to supply Airbus with high-performance sheet and plate products.

The agreement covers Airbus products including Airbus’ new A380F cargo and A350 wide body passenger planes. In addition, Alcoa also signed an agreement in principle to supply additional extrusion products to Airbus.

Terms were not disclosed, but it is worth nearly $2.0 billion in revenues over the course of the agreement, which runs through December 2011.

“This extension to the partnership between Airbus and Alcoa utilizes elements of our 20-20 initiative to reduce the weight and cost of advanced aerospace metallics,” said William Christopher, Alcoa Executive Vice President and Group President of Alcoa Aerospace, Automotive and Commercial Transportation.

Alcoa announced last week that it is expanding its aerospace heat-treated sheet and plate capacity by 50 percent as a result of customer orders.