News Releases

Aleris Secures New Multi-Year Contract With Airbus For Significantly Expanded Range Of Aluminum Products

New China facility, technology investments enable Aleris to strengthen position with key aerospace customer

Jul 19, 2016

CLEVELAND, July 19, 2016 /PRNewswire/ -- Aleris has signed a new multi-year contract with Airbus to supply aluminum plate and sheet to be used in the production of all Airbus aircraft programs. The contract starts in 2017 and also includes the supply of technically advanced wing skin material. The agreement further strengthens a long-standing partnership with Airbus, demonstrating how Aleris continues to meet the high expectations required of a strategic supplier to the aerospace industry.

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"This vote of confidence from Airbus validates our strategy to expand our global rolled products footprint and invest in technology as we are now able to extend our range of aerospace products and better serve Airbus," says Sean Stack, President & CEO of Aleris.  "With world class facilities strategically positioned in Koblenz, Germany and Zhenjiang, China we are in a strong position to support the significant growth projected in the aerospace industry, particularly in the Asia Pacific region."

The agreement itself significantly extends the Aleris relationship with Airbus, for not only does it include aluminum plate and sheet that are used in applications including aircraft fuselage and wing structures, but it now includes the supply of wing skins – a highly specialized product that requires additional processing and pre-machining.  The contract includes the supply of material from the company's facilities in Koblenz, Germany and Zhenjiang, China, the latter of which represents a $350 Million greenfield project for Aleris. This facility was qualified by Airbus for the production of aerospace material in 2015.

According to a forecast completed by Flight Ascend Consultancy, part of FlightGlobal, the world's fleet of commercial aircraft is expected to increase by 81 percent to 49,940 aircraft in 2035, by which time 41 percent of the fleet is expected to be operating in Asia Pacific and China.  Continued higher-than-average passenger traffic growth rates in this region will remain the key drivers for the industry's growth and new aircraft demand in the next 20 years.* 

*Flight Fleet Forecast 2016-2035

About Aleris

Aleris is a privately held, global leader in aluminum rolled products serving diverse industries including aerospace, automotive, building and construction, commercial transportation and industrial manufacturing.  Headquartered in Cleveland, Ohio, Aleris operates production facilities in North America, Europe and Asia. For more information, visit www.aleris.com

Forward-Looking Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of the federal securities laws. Statements  about our beliefs and expectations and statements containing the words "may," "could," "would," "should," "will," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "look forward to," "intend" and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund capital expenditures. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement.  Some of the important factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions and divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers' industries; (4) increases in the cost, or limited availability, of raw materials and energy; (5) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (6) our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt service obligations; (7) our ability to fulfill our substantial capital investment requirements; (8) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry end-uses we serve; (9) our ability to retain the services of certain members of our management; (10) the loss of order volumes from any of our largest customers; (11) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (12) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (13) variability in general economic conditions on a global or regional basis; (14) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (15) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (16) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (17) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed credit facilities; (18) our ability to access the credit or capital markets; (19) the possibility that we may incur additional indebtedness in the future; (20) limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under the Senior Notes; and (21) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law.

SOURCE Aleris

For further information: Shannon Bennett, +1 216.910.3664, shannon.bennett@aleris.com; Jason Saragian, +1 216.910.3670, jason.saragian@aleris.com


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