Alcoa, New York, plans to further expand its global aerospace business through a definitive agreement to acquire privately held TITAL, Bestwig, Germany. The acquisition will strengthen Alcoa’s global position to capture increasing demand for advanced jet engine components made of titanium.
TITAL produces titanium and aluminum structural castings for aircraft engines and airframes. Lightweight titanium can withstand extreme high heat and pressure, providing energy efficiency and performance. These engines are used on large commercial aircraft. TITAL will add capabilities in casting titanium airframe structures, such as titanium castings for pylons. Pylons mount engines onto airframes and are a highly-engineered part because they must bear the load of the engine and its thrust. TITAL employs more than 650 people, primarily in Bestwig, Germany.
Alcoa projects a compounded annual commercial jet growth rate of 7% through 2019 and sees a current nine-year production order book at 2013 delivery rates. Almost 70% of TITAL’s revenues are expected to come from commercial aerospace in 2019. In 2013, the company generated revenues of approximately $96 million, more than half of which came from titanium products.
The acquisition will establish titanium casting capabilities in Europe for Alcoa while expanding its aluminum casting capacity. The transaction was expected to close in the first quarter of 2015.