Alcoa Granted Multi-year, $470 Million Contract By Embraer

Alcoa Inc. AA disclosed a long-term contract with Embraer that is worth about $470 million. According to the company, under the multiyear deal, it would supply aluminum sheet and plate for Embraer's new E2s, the second generation of its E-Jets family of commercial aircraft, a narrow-body medium-range jet airliner.

Alcoa said the Embraer E-Jets E2 were launched in 2013 at the Paris Airshow and are scheduled to enter into service in the next two years.

The aluminum maker's President for Aerospace & Automotive Products unit, Mark Vrablec, said, "Our partnership with Embraer is rooted in constant innovation and this contract is further proof of that strength. Our patented alloys enable us to support our customer's game-changing E2 program, and we're proud that Alcoa will fly with Embraer."

The company indicated Embraer selected Alcoa's proprietary alloys for its E2 due to the combination of strength, corrosion resistance and fatigue resistance that they offer. According to its VP supply chain, Fernando Queiroz, "Alcoa offers a good combination of technical expertise and industry leading material and capabilities. Embraer designed the E-Jets E2 commercial aircraft to be the best in its segment and to do that, we needed the best material in the business, and Alcoa offers the best solution."

On Thursday, the stock traded 1.1 percent up.