Alcoa Develops New Aircraft Alloys

U.S’s largest aluminum producer, Alcoa Inc (AA - Analyst Report) has developed a new generation of alloys and technologies, which can lower the weight of airliners by up to 10% and improve fuel efficiency even more.

High oil prices have prompted aircraft makers to look for lighter metals and composites while retaining its strength and durability.

Alcoa's new aluminum- or aluminum-lithium based alloys and advanced structural technologies use sheet, plate, forgings and hard alloy extrusion products across aircraft structures, including airplane wings and fuselage elements.

According to the company, aircraft made from these materials can weigh up to 10% less than composite-intensive ones and allow for a 12% increase in fuel efficiency, on top of the 15% already gained from more efficient jet engines.

The new alloys and technology can also lower the cost of manufacturing and repairs by up to 30%. Along with new alloys, Alcoa is using advanced structural techniques.

The aerospace business is rebounding from the recession and demand for aluminum and light alloys is growing as Asia and the Middle East build up fleets and airlines in North America and Europe to replace the aging aircraft.

The new alloys and technologies have been developed by Alcoa over the last 10 years and will be manufactured at Davenport, Iowa; Lafayette, Indiana; Cleveland; Hanover, Germany and Kitts Green, England.

Alcoa, a Pennsylvania-based corporation, is among the world’s leading producers of primary and fabricated aluminum and alumina. It involves the technology of mining, refining, smelting, fabricating and recycling of aluminum. We believe that Alcoa’s cost reduction efforts are, to some extent, offsetting the negative impact of higher energy and raw material costs on profitability.

The company is divesting underperforming assets through its restructuring program. The annual global consumption of aluminum products, both upstream and downstream, is expected to double over the next 15 years. This consumption boom will be driven primarily by growth in China, India, Russia and Brazil, whose demographics are accelerating development.