Alcoa has landed a $1.5 billion supply contract with General Electric, according to the Wall Street Journal. The contract is with G.E.'s aviation unit, and will have the two companies working together for quite a while. As part of the contract, Alcoa will supply G.E. with valuable engine parts, the International Business Times reports.
These supplies include nickel-based super alloys, titanium, and aluminum aviation components. "We greatly appreciate GE's continued confidence in Alcoa's aerospace capabilities," said Klaus Kleinfeld, the Alcoa CEO.
The parts that will be sent to General Electric will be made in six states across the United States. They will also be produced in both France and Canada, according to Reuters.
The contract comes as good news to Alcoa, which is expected to show its worst quarterly report this upcoming week. It will also help its business grow after the company reported that it would be splitting its business into two parts: one part focused on creating parts for automobiles and aviation crafts, and the other focused on smelting.
Both sides of the company have been hurting as well, Alcoa announcing last week that it would be permanently closing one of its largest aluminum smelting facilities in the U.S.
Since the announcement of this contract, however, Alcoa shares have risen 1 percent, which could mean positive changes in the company's future.
