UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 25, 1998
Howmet International Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-13645 52-1946684
Commission File Number (IRS Employer Identification No.)
475 Steamboat Road, Greenwich, CT 06836-1960
(Address of principal executive offices) (Zip Code)
(203) 661-4600
Registrant's Telephone Number
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ITEM 5 OTHER EVENTS
The following news release was issued on August 25, 1998.
Howmet to Expand Aerospace and IGT Capacity
Greenwich, CT--Howmet Corporation, a subsidiary of Howmet International
Inc. (NYSE: HWM) (www.howmet.com), today announced that it is expanding its
manufacturing capacity, including a new aero-airfoil plant and expansions
at three plants that manufacture industrial gas turbine (IGT) components.
Howmet is expanding capacity in response to growing customer demand for
these products. "We are taking these steps with full awareness of aircraft
cycle projections and long-term IGT needs," says David L. Squier, president
& ceo. "After evaluating all market factors, we are convinced that this is
the right time to take actions which will show our customers they can count
on us to meet their needs."
Squier says that the aircraft industry is currently demanding more capacity
for turbine components. The strength of aftermarket sales, combined with
the market trend to use the most advanced technology components, will
offset the anticipated decline in new engine sales. This trend, along with
the recent awarding of several major, long-term contracts, created the
sense of urgency that drove the timing of the decision to expand.
According to James Stanley, senior vice president of US operations,
"Aftermarket production, now half of Howmet's aero output, is expected to
grow as a percentage of sales. Commercial aircraft in service now number
more than 12,000. That number is projected to grow to 17,000 by the year
2007. In response to market demand, Howmet will begin construction during
the fourth quarter of 1998, following completion of the site selection
process now underway, for the aero-airfoil plant. We will build a
120,000-square-foot facility dedicated to the high-volume production of
directionally solidified and single crystal airfoils, technologies in which
Howmet has demonstrated leadership." The plant will be equipped initially
to produce $60 million in revenue, will require an investment of $40
million over the next 18 months and will employ approximately 350 people.
The plant design will allow for future expansion to $100 million in
revenue.
The recent surge of IGT orders accelerated existing plans for capacity
expansion, as the sale of components for electric power generation
continues to rise. Howmet holds a majority share of the market for IGT
castings, and the company's projections anticipate strong and growing
demand for aftermarket and OEM sales.
Headquartered in Greenwich, CT, Howmet is a world leader in the manufacture
of precision castings of superalloy, titanium and aluminum alloys,
primarily for jet aircraft and industrial gas turbine engines. Howmet and
its subsidiaries operate 29 production facilities in the United States,
Canada, France, the United Kingdom and Japan.
This press release includes forward-looking statements. Pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995, the Company cautions readers that such forward-looking statements are
subject to certain risks and uncertainties, which could cause actual
results to differ materially from those projected in those statements.
These risks and uncertainties include, but are not limited to, worldwide
economic and political conditions, the effects of aerospace industry
economic conditions and cyclicality, a concentrated customer base,
competition, pricing pressures, availability and cost of raw materials, and
others detailed in Exhibit 99.1 to the Company's Annual Report on Form 10-K
filed with the Securities and Exchange Commission for the year 1997.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
HOWMET INTERNATIONAL INC.
(Registrant)
By: /S/ Roland Paul
Roland Paul
Vice President
Date: August 26, 1998
