Boston, MA 06/19/2014 (wallstreetpr) – Increased demand for next generation aircraft has prompted, Alcoa Inc. (NYSE:AA), to invest $25 million at its Hampton VA facility as a way of beefing up capacity; this is part of the company’s strategy to profitably, grow the aerospace business that continues to show huge potential.
Alcoa State of the Art Technology
The investment is geared towards developing state of the art process technology dubbed enhanced Equifax EEQ. The technology is reported to have the ability to reduce weight of the highest volume jet engine blades by up to 20% sure to boost aerodynamic performance for fuel efficiency. Alcoa plans to add a new production line as well as modifying the existing machinery at the Virginia facility to manufacture light nickel based airfoil blades.
Alcoa Inc. (NYSE:AA) plans to use advanced manufacturing technologies such as Digital X-ray and robotics to enhance its product inspection. The expansion project is set to start this month running till the fourth quarter of 2015 expected to create 75 new full-time jobs over three years. Alcoa is in line to get $2 million in state and local incentives and $1.3 million exemption on sales for choosing Hampton for the project.
$4 Billion of Sales from Aerospace Business
Alcoa derived $4 billion of its sales last year from the aerospace segment holding a market leading position in aerospace forging, extrusions and fastening systems made by the downstream business. Alcoa Inc. (NYSE:AA) has already broken ground on its $100 million aerospace expansion in La Porte where it is set to produce Nickel based Spirally jet engine parts.
The 32,000 square foot plant is set to increase the company’s capacity for the supply of engines for narrow body aircraft. The plant will also enable the company produce parts that are 60% larger than it currently produces; this should be a major leap forward in the production of parts for wide-body airplanes.
