Alcoa Completes second Automotive Expansion in USA to Meet Strong Demand for Aluminum Vehicles
- Newly expanded plant is Alcoa’s second major North American automotive expansion backed by long-term customer contracts
- $300 million expansion supports Company’s strategy to capture growing demand for automotive aluminum sheet; aluminum body sheet use in North America vehicles expected to increase elevenfold by 2025
Lightweight metals leader Alcoa today announced it has completed an expansion at its Tennessee facility dedicated to supplying aluminum sheet to the automotive industry. The plant will provide aluminum sheet to automakers that include Ford Motor Company, Fiat Chrysler Automobiles and General Motors.
“Automakers are demanding lighter, stronger materials that improve the performance of their vehicles and Alcoa is at the forefront of capturing that demand,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “Through our capacity expansions in Tennessee and Davenport, and breakthrough technologies like the MicromillTM, we have cemented Alcoa’s position as the premier partner to the automotive industry as it turns to aluminum.”
The $300 million project in Tennessee – which began customer shipments earlier this month – is Alcoa’s second major automotive expansion in North America backed by long-term customer contracts. The first, in Davenport, Iowa, reported record volume of automotive sheet shipments in the second quarter of 2015, up approximately 200 percent from the second quarter 2014.
According to Ducker Worldwide, the amount of aluminum body sheet content in North American vehicles is expected to grow by three times from 2012 to 2015 and increase elevenfold by 2025 from 2012 levels. Alcoa estimates that it will grow its automotive sheet revenue approximately sixfold, from $229 million in 2013 to $1.3 billion in 2018.
The state-of-the-art facility is equipped with rolling mill technology that allows it to switch production depending on changing market demands, moving between automotive and can sheet production. The location also features a large recycling facility for automotive scrap which offsets expense, eliminates waste for automakers, lowers operational cost and reduces Alcoa’s carbon footprint.
The expansion created approximately 200 full-time jobs.