Alcoa (NYSE:AA) Signs Russian Shipbuilding Deal

Alcoa (NYSE:AA) signed a deal with the state-owned Russian shipbuilder JSC to supply aluminum for its ships.

JSC, or JSC United Shipbuilding Corp., is the largest holder of assets related to building or repairing ships in Russia, said Alcoa, who signed the deal with them in St. Petersburg at an economic forum.

Part of the deal will be to aid in building out the shipbuilding market in Russia, which could be a good long-term deal for Alcoa, which has struggled to open up new markets and generate new demand for aluminum, which has plunged in price as demand has largely dried up since the recession began.

Alcoa has been doing business in Russia since 1998, and has acquired two aluminum plants in the country, while spending $750 million to upgrade them.