Precision Castparts Corp. (PCC) might be on the hunt for a
producer of aerospace fastener stock.
Mark Donegan, chairman
and chief executive officer of Portland, Ore.-based PCC, told
securities analysts in a conference call that there are "two or
three more assets we would like to get our hands on" in the
fastener industry. He noted specifically that PCC doesnt
have in-house capacity to produce fastener stock to feed its
manufacturing operations but would like to gain that
The aerospace fastener
industry has consolidated greatly in recent years and PCC is
considered one of the three major global manufacturers, with
Alcoa Inc., Pittsburgh, and Frances LISI Aerospace
Donegans wish lists are usually taken seriously in the
aerospace supply chain. In July 2012, he said during an
analysts conference call that titanium represented the
"one hole" at PCC in terms of melted feedstock for its forging
operations and the company would "love to get" input stock.
Within four months, PCC had spent $2.9 billion for Titanium
Metals Corp., the industrys largest independent producer
amm.com, Nov. 9).
Since then, PCC has
proposed a $600-million purchase of French fittings
manufacturer Permaswage SAS (
amm.com, June 28).
But Donegan said this
week that PCC remains "extremely active" on the mergers and
acquisition front and could "probably deploy" $1.5 billion to
$2 billion in the next couple of years, although not all of it
at one time.
say what type of feedstock capacity PCC is seeking. While most
aerospace fasteners today are probably aluminum, titanium
likely represents the largest growth area since it is
considered more compatible with the composites increasingly
being used in airframe construction.
The two dominant U.S.
titanium aircraft fastener stock manufacturers are viewed as
the Dynamet unit of Carpenter Technology Corp., Washington,
Pa., and family owned Perryman Co. in Houston, Pa. But other
entrants into the market in the past few years have included
much larger, integrated titanium producers like Allegheny
Technologies Inc., Pittsburgh, which said it has landed firm
production orders, and Russias VSMPO-Avisma Corp.,
through its bar and wire-producing unit NF&M International
Inc. in Monaca, Pa. VSMPO in 2011 signed a deal with Universal
Stainless & Alloy Products Inc., Bridgeville, Pa., to
convert VSMPO billet for bar in coils for NF&M (
amm.com, Aug. 25, 2011).
About two years ago,
New York-based investment firm Cowen & Co. LLC estimated
the total annual aerospace fastener market at $3 billion to $4
billion, including not only titanium but also specialty and
stainless steels, nickel superalloys and aluminum (
amm.com, Aug. 19, 2011).