Company has been shifting from mining, smelting aluminum to making products for automotive, aerospace industries
NEW YORK—Alcoa Inc. is buying German titanium and aluminum structural castings company Tital GmbH to help expand its global aerospace business.
Financial terms were not disclosed.
Alcoa, which is based in New York and has key operations in Pittsburgh, has been shifting from mining and smelting aluminum to making products that can be shaped into parts for autos and airplanes.
The privately-held Tital’s castings are used for aircraft engines and airframes.
Tital’s 2013 revenue totalled about US$96 million, with more than half of that coming from titanium products.
Alcoa said the transaction will help it deal with rising demand for advanced jet engine components made of titanium, which can withstand extreme high heat and pressure.
Titanium is also a lighter weight alternative to steel, providing increased energy efficiency and improved performance.
Alcoa also said Tital’s strong connections to European engine and aircraft makers like Airbus SAS, Snecma S.A. and Rolls-Royce Holdings plc will help bolster its customer relationships in the region.
Both companies’ boards have approved the deal, which is expected to close in 2015’s first quarter.
The move comes about six months after Alcoa announced plans to build a US$100-million jet engine parts plant in Indiana, and about five months after it bought British jet engine components maker Firth Rixson Ltd. in a deal worth nearly US$3 billion.