TITAL’s  revenues from titanium are expected to increase by 70% over the next five years as manufacturers of next-generation jet engines look to titanium solutions for engine structural components. These engines are used on large commercial aircraft, including wide- and narrow-body airplanes. TITAL also makes advanced, single-piece components, such as engine gearboxes, nacelles and fan frames, which are used on current and next-generation jet engines and airframes. 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.

“This acquisition is the next step in building a powerful aerospace growth engine,” said Klaus Kleinfeld, Alcoa chairman and CEO. “TITAL will increase our share of highly differentiated content on the world’s best-selling jet engines.”

Growth projection

“Alcoa is widely recognized for its innovation and manufacturing expertise, which is fully in line with TITAL’s philosophy,” said Philipp Schack, CEO of TITAL. “We look forward to joining the Alcoa family, and to combining our world-class technologies and processes.”

Alcoa projects a compounded annual commercial jet growth rate of 7% through 2019 and sees a current 9-year production order book at 2013 delivery rates. In 2013, TITAL generated revenues of approximately €71 million (US$96 million), more than half of which came from titanium products.