FOOTHILL RANCH, Calif., Aug 22, 2006 (BUSINESS WIRE) -- Kaiser Aluminum (NASDAQ:KALU) today announced the signing of an agreement with Eclipse Aviation Corporation to supply aluminum fabricated products for use in the production of the Eclipse 500 revolutionary very light jet (VLJ). The multi-year agreement calls for Kaiser Aluminum to be the primary provider of aluminum plate and sheet products commencing in calendar year 2007 for the 2,500 Eclipse 500 jets currently on order.
"Kaiser Aluminum has long been a preferred supplier of high quality aluminum products to aerospace companies around the world," said Jack A. Hockema, chairman, president and CEO, Kaiser Aluminum. "The previously-announced $105 million expansion of Trentwood's plate capacity and capability enables us to provide the broad range of products required by Eclipse."
"While Kaiser is participating in the growth of the commercial airliner segment, this new relationship with Eclipse Aviation represents a tremendous opportunity in a newly-emerging aerospace segment," added Hockema.
Through the use of advanced avionics, new manufacturing techniques and innovative applications of digital information technology, Eclipse Aviation is building next-generation aircraft for the general and commercial aviation markets. These aircraft, manufactured in a state-of-the-art, high-volume production system, cost about a third of today's small jet aircraft, will be significantly safer and easier to operate than those of today, and have the lowest cost of ownership ever achieved in a jet aircraft.
"Securing aluminum in a market in which there has been record levels of demand, constrained supply and price increases is a significant challenge," said Eclipse Aviation President and CEO Vern Raburn. "This contract with Kaiser demonstrates that we are committed to securing our raw materials requirements while managing raw material costs in anticipation of long-term production. We look forward to Kaiser being our partner in this effort."
Kaiser Aluminum is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, and automotive and custom industrial applications. The company has more than 2,000 employees and 11 plants in North America and produces more than 500 million pounds annually of value-added sheet, plate, extrusions, forgings, rod, bar and tube. For more information, visit our Web site at www.kaiseraluminum.com.
Kaiser Aluminum press releases may contain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of the company to be materially different from those expressed or implied. Kaiser Aluminum cautions that such forward-looking statements are not guarantees of future events and that actual events may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. These factors include: (a) changes in the markets served by the company, including aerospace and defense markets; (b) the company's ability to complete its expansion projects as planned and by targeted completion dates; (c) the company's ability to meet contractual commitments and obligations to supply products meeting required specifications; (d) customer performance; (e) developments in technology used by the company, its competitors or its customers; and (f) other risk factors summarized in the company's Annual Report on Form 10-K (for example, see Item 1A. "Business --Risk Factors" and Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations") and other reports filed with the Securities and Exchange Commission.
SOURCE: Kaiser Aluminum
Investor Relations: Kaiser Aluminum Joe Bellino or Dan Rinkenberger, 949-614-1740 or Public Relations: Fleishman-Hillard Geoff Mordock, 213-489-8271
Copyright Business Wire 2006
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