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Thursday, September 11, 2014

Alcoa signs Boeing deal worth more than $1 bln, (NYSE: AA), (NYSE: BA)

Alcoa Inc has signed a long-term contract to supply planemaker Boeing Co with aluminum sheet and plate that is worth more than $1 billion, the metals company said on Thursday. The new contract is the largest ever signed between the two companies, said Alcoa, a longtime Boeing supplier. It did not disclose a precise value or time frame.Alcoa has been expanding its aerospace business, and in June announced a $2.85 billion deal to purchase jet engine part maker Firth Rixson.Though it helped create the modern aluminum industry more than a century ago, Alcoa is eager to produce higher-margin, specialized parts for aerospace and automotive customers, even if they contain other metals or no aluminum at all.Alcoa said the agreement announced on Thursday "establishes a foundation for continued collaboration" on new alloys, including aluminum-lithium.

Alcoa Inc. (Alcoa) is engaged in lightweight metals, products and solutions. Shares of AA fell by 0.66% or $-0.1129/share to $17.09. In the past year, the shares have traded as low as $7.82 and as high as $17.36. On average, 14823800 shares of AA exchange hands on a given day and today's volume is recorded at 3183111.

The Boeing Company (Boeing) is an aerospace company. Shares of BA fell by 0.44% or $-0.57/share to $127.65. In the past year, the shares have traded as low as $107.80 and as high as $144.57. On average, 4366250 shares of BA exchange hands on a given day and today's volume is recorded at 332902.



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