Alcoa in Strategic Partnership With COMAC

On Monday, Alcoa announced that its Alcoa Fastening Systems (AFS) subsidiary has signed a strategic technology and commercial cooperation agreement with Commercial Aircraft of China.

The Chinese company, commonly referred to by the acronym "COMAC," is the maker of one of the first of a new batch of homegrown commercial airliners in China -- the C919, sized to compete with Airbus' A320 and Boeing's venerable 737. Alcoa says that by partnering with COMAC -- as it has already in the past -- "reinforces Alcoa's presence in one of the world's fastest-growing aerospace markets."

AFS President Vitaliy Rusakov characterized its relationship with COMAC as that of "a key partner ... in the development and production of its commercial C919 aircraft." In a statement, AFS clarified that it will provide the Chinese company "technical assistance in fastener and assembly tooling selection, joint design consideration, and quality system management," including assistance with "engineering, design, and training.


In return, it expects to sell COMAC a lot of fasteners for the new plane.

Alcoa shares, however, didn't respond as expected to the announcement, actually declining 1.4% to end the day at $8.90.

The article Alcoa in Strategic Partnership With COMAC originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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