) announced that it has broken ground on its new $100 million
aerospace expansion in La Porte, IN, where it will produce
nickel-based superalloy jet engine parts for large commercial
aircraft, including narrow- and wide-body and military airplanes.
The plant's construction is expected to complete by the end of
2015. The plant will provide highly engineered parts that are
required to build some of the best selling engines and at high
volumes to its customers. The facility will utilize the latest
technologies in order to meet particular product specifications.
The 32,000 square feet plant will increase Alcoa's capacity to
supply engines for narrow-body aircraft. It will also enable Alcoa
to produce parts about 60% larger than components it already
produces, thus expanding its market presence to wide-body
The Indiana Economic Development Corporation has offered Alcoa up
to $4 million in conditional tax credits, based on the company's
job creation plans. Further, the city of La Porte has approved tax
incentives of $7.1 million over a 10-year period. This is the
second major aerospace investment by Alcoa in Indiana in two years.
The first one being Alcoa's plans of constructing a $90 million
greenfield state-of-the-art aluminum lithium facility at its
Lafayette operations, as announced in 2012.
Alcoa is witnessing healthy airline fundamentals. The company, on
Apr 8, increased its global aerospace growth expectations for 2014
to 8%-9% from 7%-8% factoring in strong demand for both large
commercial aircraft and regional jets and sustained growth in the
business jet market.
Alcoa, a prominent player in the mining industry along with
Aluminum Corporation of China Ltd.
Atlatsa Resources Corp.
BHP Billiton Ltd.
), is a world leader in production and management of primary
aluminum, fabricated aluminum, and alumina. The company currently
holds a Zacks Rank #3 (Hold).
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