Boston, MA 06/13/2014 (wallstreetpr) – Aluminum giant Alcoa Inc. (NYSE:AA) has confirmed that it is to forge forward with its $100 million aerospace expansion in La Porte. The company will now start producing nickel based superalloy that are to be used for jet engine parts in large commercial aircrafts and military airplanes
Alcoa Offered $4 million
Construction Completion for the construction of the plant has been set as of the end of 2015. The plant is expected to produce highly engineered parts required to sell some of the bestselling engines at high volumes. The facility will also utilize advanced and latest technologies able to meet particular product specifications. The 32,000 square feet will have the ability to increase Alcoa Inc. (NYSE:AA)’s capacity to supply engines for narrow body aircrafts.
Alcoa Inc. (NYSE:AA) has already been offered $4 million in conditional tax credits by the Indiana Economic Development Corporation; this is based on the company’s job creation plans, which seem to have excited the state authorities. The City of La Porte’s has also approved tax incentives of $7.1 million over the 10 year period.
This is not Alcoa Inc. (NYSE:AA)’s first aerospace project in Indiana. The company already has plans in place to construct a $90 million Greenfield aluminum lithium facility at Lafayette as announced in 2012.
Alcoa Workers Vote to Approve Labor Contracts
Approximately 444 Alcoa Inc. (NYSE:AA) workers at the Tennessee Operations have voted in favor of a five year labor contract. Twenty six workers voted against the new contract. The previous contract had expired on May 15 with a new deal announced the following morning. The new contract covers about 6,100 workers in 10 of the company’s plants.
Under the new agreement, workers in all grades will be entitled to a 2.5% increase in wages during the first three years and 3% increase for the remaining two years. Insurance premiums are to remain unchanged with no subsequent increase in deductibles copays or coinsurance.
