Five companies to provide $4.3 billion of aluminum By BOB REGAN

NEW YORK -- Boeing Co.'s Commercial Airplane Group Monday named five aluminum companies that will provide $4.3 billion worth of flat-rolled aluminum and extruded aluminum products it expects it will need for commercial aircraft production over the next 10 years.

The Seattle-headquartered aircraft/aerospace giant in July selected Thyssen Inc. North America as its exclusive distributor of flat-rolled aluminum and certain small and intermediate-size extrusions. The 10-year contract, seen posing far-reaching implications for the existing metals distributor networks serving Boeing, prompted Thyssen to form a new division, TMX Aerospace, to administer the Boeing contract, valued at $300 million over the 10-year period

Asked how the five aluminum companies-Aluminum Co. of America, Pittsburgh; Kaiser Aluminum Corp., Houston; Century Aluminum Co., Monterey, Calif.; Universal Alloys Co., Canton, Ga.; and Hoogovens Aluminium Walzprodukte GmbH, Koblemz-were selected, a Boeing spokeswoman said there was an open bidding procedure and the choices were based on prices and such other criteria as business plan alignment, location, warehousing and other factors. At least two companies- Alcoa and Kaiser-had been selected earlier

Boeing said Monday that its strategy will be to buy its aluminum directly from the mills and then ship it through its single-source distributor to its external component suppliers and its internal shops. Boeing's previous aluminum procurement strategy involved itself, a system of 500-plus aerostructures suppliers and other smaller suppliers dealing with seven aluminum mills, 14 aluminum extruders and more than 50 distributors.

Boeing said its new system is designed to "eliminate speculative demand and "ensure a continuous supply of raw materials to Boeing internal operations and external suppliers at the lowest possible cost."

Boeing said Monday the new system will get under way soon, with aluminum deliveries under the new regime scheduled before the end of the year.