Allegheny Technologies Incorporated announced that it has extended and expanded two long-term supply agreements for closed-die forgings and mill products with “a major jet engine OEM,” which it did not identify. The new agreements take effect in 2015 and continue into the next decade, according to Pittsburgh-based Allegheny Technologies, though the specific terms and projected values were not announced.
In 2011, ATI initiated a long-term agreement to supply a proprietary nickel-based alloy to Rolls-Royce in different forms, for jet engine components. In 2012, ATI and GE Aviation launched a long-term supply deal with GE Aviation for a nickel-based superalloys used to produce forged discs for jet engine components.
Long-term supply agreements are not uncommon in the aircraft and aerospace markets, in particular for specialty alloy products. Alcoa, for example, recently expanded its supply status with Boeing for aluminum products across multiple aircraft programs. Alcoa and ATI have several LTAs in effect for titanium products
“We are pleased to extend and expand these strategic supply agreements,” stated ATI chairman, president, and CEO Rich Harshman. “The new agreements enhance and solidify our long-term strategic relationship and recognize our integrated capabilities from raw materials (titanium sponge) through mill products to machined forgings for the most innovative next-generation jet engines, as well as for legacy engines.
One of ATI’s new LTAs covers closed-die forgings, including parts made using advanced iso-thermal and hot-die forging processes.
ATI’s forging operations are centered at Cudahy, WI, the former headquarters of Ladish Inc., which ATI purchased in 2011 for nearly $900 million. It produces complex-shaped impression-die forgings up to 56,000 lb. weight and 45 in. diameter, in steel, titanium, nickel-based alloys, and powder metals.
The second new LTA covers a range of titanium-based alloy and nickel-based superalloy mill products.
“Through the expanded and extended agreements announced today, as well as our existing agreements for differentiated alloys, ATI has secured a substantial position on next-generation and legacy single-aisle jet engine programs,” the chairman continued. “We believe these agreements enhance our position as a leading integrated supplier of specialty materials mill products. In addition, the forged parts agreement significantly increases ATI’s content and growth trajectory for our forgings on the leading single-aisle and business jet engine programs.”
