ThyssenKrupp Services Purchases Alcoa's Aerospace Service Business in North America and Europe
ThyssenKrupp Services AG, Duesseldorf, Germany, is pleased to announce the expansion of its materials services business for the aerospace industry. ThyssenKrupp Services AG, one of the 5 business segments of the ThyssenKrupp AG global industrial group, has purchased from Alcoa Inc. its Aerospace Service Business which provides high-grade value-added processing services for aircraft manufacturers.
ThyssenKrupp Services has acquired the business as a result of an international invitation to bid, following Alcoa's decision to focus on its core aerospace business with 2005 revenues in excess of US$2.7 billion (€2.1 billion). Approximately 100 employees and sales of US$96 million (€75 million) of Alcoa's Aerospace Service Business will be integrated into ThyssenKrupp Services following the acquisition. The transaction was consummated by three ThyssenKrupp Services' subsidiaries in the USA, the United Kingdom, and Germany.
At present, ThyssenKrupp Services is supplying the aerospace industry worldwide through its subsidiaries in Brazil, France, the UK, Germany, and North America.
In the United Kingdom, ThyssenKrupp Services has acquired from Alcoa its Aluminum Supply Aerospace (ASA) business unit, including 100 employees as well as two service centers in Manchester and Northern Ireland, thus establishing a strong and lasting foothold as a supplier to the aerospace industry. In the Continental Europe, ThyssenKrupp's Services segment acquired the Aerospace Service Business, including inventories, processing capabilities and supply contracts.
In North America, through its subsidiary ThyssenKrupp Materials NA, Inc., ThyssenKrupp Services acquired aluminum inventories and longstanding service and supply contracts with original equipment manufacturers and tier one suppliers to the aerospace industry, including Cessna, Bombardier, and Vought Aircraft. The acquired contracts include advanced processing of aluminum plate and sheet products, such as sawing, shearing, sheet leveling, drill-and-tap and first-stage machining. The complete range of services also includes just-in-time and kanban deliveries. The contracts will be serviced out of the facilities of ThyssenKrupp Materials NA's TMX Aerospace Division in the US and Canada.
ThyssenKrupp Materials NA, through its TMX Aerospace Division, has already established itself as a preferred supplier to the aerospace industry in North America, expanding its business into a variety of aerospace sectors and establishing successful service contract relationships with Boeing Commercial Airplanes, Boeing Military, and Rolls-Royce Corporation. Most recently, ThyssenKrupp Materials NA was awarded a 6-year aluminum services contract with Bombardier Aerospace in Montreal, Canada.
Commenting on the purchase, Joachim Limberg, Deputy Chairman of the Executive Board of ThyssenKrupp Services AG and Chairman and CEO of ThyssenKrupp Materials NA stated, "The expansion of the aerospace business is of great strategic significance for us. Through our supply chain management solutions we already have a strong footing in the aerospace industry. This acquisition secures us worldwide access to all of the well-known aircraft manufacturers and their key suppliers and is an important and sustained step as an internationally recognized systems supplier to the aerospace industry."
Highlighting the importance of the transaction for the group's North American operations, Richard J. Greaves, President and COO of ThyssenKrupp Materials NA, also added: "We are extremely excited about the new opportunities this acquisition brings to ThyssenKrupp Materials NA, as it further diversifies the customer base for our integrated supply chain management programs and allows us to bring an expanded range of services to our existing customers in the aerospace sector. Our TMX Aerospace Division will continue to service Alcoa's customers without interruption, offering the highest quality of products and services as well as access to the vast resources of the ThyssenKrupp group worldwide."
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