March 18 (Reuters) - Howmet Aerospace's ( HWM ) CEO said

on Tuesday the company is prioritizing long-term deals as it

sees fresh demand from customers after a major fire at a

Philadelphia-area parts factory hit supply, roiling an industry

set to make more planes.

Howmet CEO John Plant told Bank of America's Global

Industrials Conference that the Pittsburgh-based supplier would

invest in expanding capacity for customers that will give it

long-term business.

The February fire at SPS Technologies' century-old factory,

which produced specialized fasteners for planes, is putting

pressure on the industry's already strapped supply chain.

"I have no interest in taking these costs on to only have to

delete them later in the year," Plant said. "That doesn't make

economic sense at all."

Reuters reported last month that U.S. planemaker Boeing ( BA )

and other top aerospace companies were scouring their

supply chains to determine their exposure to the fire at the

stadium-sized facility, which is part of Berkshire

Hathaway ( BRK/A )-owned Precision Castparts Corp.

Boeing ( BA ) and European rival Airbus are increasing

plane production, with the U.S. planemaker trying to bounce back

after output slumped last year due to multiple crises. Suppliers

are bracing for higher costs on materials such as aluminum used

in aircraft due to an escalating U.S.-led trade war.

Plant said Howmet, which has the necessary certifications to

produce some of the parts made at the SPS factory, is in the

process of responding to customers for parts following the fire.

He added that Howmet would pass on to customers any higher costs

it would face for imported materials.

The CEO said Howmet would support Boeing's ( BA ) plans to hit a

monthly production rate of 38 and beyond for its

strongest-selling 737 MAX planes.

Plant praised Boeing ( BA ) CEO Kelly Ortberg's decision to

relocate to Seattle after taking the helm last year.

"The fact that he's there and you see pictures of him on the

shop floor having a more hands-on approach, that's very welcome

to see," Plant said.