- 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 (NYSE: AA) 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.
Alcoa executives, Tennessee Governor Bill Haslam and other state
and local officials will celebrate the expansion in Tennessee with
a ribbon cutting event this afternoon.
“We want to thank Alcoa for this project and the 200 new jobs in
Blount County,” said Governor Haslam. “When a world renowned
company like Alcoa expands here in Tennessee, it shows we can
compete in the global marketplace, and it strengthens Tennessee’s
continued growth as a leading automotive manufacturing state.”
The opening of the Tennessee facility follows Alcoa’s recent
announcement that it is commercializing its breakthrough
MicromillTM technology. Ford Motor Company and Alcoa last week said
that the automaker will debut Micromill material on its 2016 Ford
F-150 truck. The companies also agreed to collaborate on
next-generation Micromill aluminum alloys for automotive parts.
Separately, Alcoa and Danieli Group announced they have entered
into a letter of intent to work toward an agreement to sell
Micromill equipment and license the patented Micromill technology
to potential customers around the world.
Editor’s Note: For B-roll footage and photos of the Tennessee
automotive expansion, visit the Alcoa website here.
About Alcoa
A global leader in lightweight metals technology, engineering
and manufacturing, Alcoa innovates multi-material solutions that
advance our world. Our technologies enhance transportation, from
automotive and commercial transport to air and space travel, and
improve industrial and consumer electronics products. We enable
smart buildings, sustainable food and beverage packaging, high
performance defense vehicles across air, land and sea, deeper oil
and gas drilling and more efficient power generation. We pioneered
the aluminum industry over 125 years ago, and today, our more than
60,000 people in 30 countries deliver value-add products made of
titanium, nickel and aluminum, and produce best-in-class bauxite,
alumina and primary aluminum products. For more information, visit
www.alcoa.com, follow @Alcoa on Twitter at www.twitter.com/Alcoa
and follow us on Facebook at www.facebook.com/Alcoa.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as “anticipates,” “estimates,” “expects,” “plans,”
“projects,” “will,” or other words of similar meaning. All
statements that reflect Alcoa’s expectations, assumptions, or
projections about the future other than statements of historical
fact are forward-looking statements, including, without limitation,
statements regarding growth opportunities for aluminum in
automotive applications; statements regarding the expected benefits
of advanced aluminum alloys and manufacturing technologies and
processes, including the Alcoa Micromill; and projections of future
automotive sheet revenue. Forward-looking statements are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict and are not guarantees of future performance.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include:
(a) material adverse changes in aluminum industry conditions or in
the markets served by Alcoa, including the automotive market;
(b) failure to successfully commercialize, or to realize expected
benefits from, new technologies, processes, or products, including,
without limitation, next generation aluminum alloys or the Alcoa
Micromill, at the levels or by the dates anticipated, whether due
to changes in the regulatory environment, competitive developments,
unexpected events, such as failure of processes or material to meet
specifications, changes in customer preferences, disagreements with
partners, or other factors; (c) the risk that Alcoa is unable to
supply aluminum sheet to automotive customers from the Tennessee or
other facilities in the quantities or by the dates required, or
that such material is not used in the volumes or on the vehicles
projected; and (d) the other risk factors discussed in Alcoa’s Form
10-K for the year ended December 31, 2014 and other reports filed
with the Securities and Exchange Commission. Alcoa disclaims any
intention or obligation to update publicly any forward-looking
statements, whether in response to new information, future events
or otherwise, except as required by applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20150924005120/en/
Alcoa InvestorsNahla Azmy,
212-836-2674Nahla.azmy@alcoa.comorAlcoa MediaLori Lecker,
412-553-3186lori.lecker@alcoa.com
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