Positions Alcoa to Capture Growing Demand for
Company’s Lightweight, Durable, Low-Maintenance Aluminum Truck
Wheels in Europe
- Expansion doubles capacity to produce
Dura-Bright® EVO surface-treated wheels, which are 10 times more
corrosive resistant, easy to clean and look newer longer
- Total global aluminum wheel sales are
expected to increase from 30 percent of the total market in 2010 to
50 percent in 2018
- To boost adoption within Hungary’s
public transportation system, Alcoa launches pilot program with
regional Székesfehérvár city bus system
- US$13 million expansion will add 35
jobs in Hungary
Lightweight, high-performance metals leader Alcoa (NYSE:AA)
today officially opened its expanded wheels manufacturing plant in
Hungary. The larger facility doubles Alcoa’s capacity to produce
its Dura-Bright® EVO surface-treated wheels compared to 2014
production levels. The expansion will enable Alcoa to meet growing
European demand for its lightweight, durable, low-maintenance
aluminum truck wheels.
To meet growing demand for its innovative
wheels, Alcoa has expanded its wheels manufacturing plant in
Hungary (expansion shown here), doubling its capacity to produce
lightweight, durable, low-maintenance Dura-Bright® EVO
surface-treated aluminum truck wheels. (Photo: Business Wire)
“This expansion positions Alcoa to capture increasing demand for
our innovative aluminum truck wheels in Europe, including our
easiest-to-clean wheels that look new longer, reduce maintenance
costs, and increase payload and fuel efficiency,” said Tim Myers,
President, Alcoa Wheel and Transportation Products. “Our
investments in forged aluminum truck wheels support Alcoa’s broader
strategy to build out our value-add businesses and gain profitable
share in growing downstream markets. Sales of aluminum truck wheels
are expected to increase from 30 percent of global sales in 2010 to
50 percent in 2018.”
Construction of the US$13 million (HUF 2.8 Billion) expansion
was completed on schedule and will create 35 new permanent jobs in
Hungary once the facility reaches full capacity. Demonstrating its
support for the project, the Hungarian Government agreed to
contribute US$4.4 million (HUF 1 billion) through its Regional
Operative Program, a government-led economic development
initiative.
“Alcoa has enjoyed a long and very successful history in Hungary
and we look forward to building on this positive track record with
this expansion,” said Dr. Béla Forgó, Country Manager of Alcoa
Hungary. “In addition, today Alcoa launched a pilot project with
the regional Székesfehérvár city bus system to demonstrate the
economic and environmental benefits of our wheels for public
transportation.”
Under the pilot program with the regional Székesfehérvár city
bus operator, a number of buses will be outfitted with Alcoa’s
wheels. Bus operators in other municipalities have realized up to
five percent fuel savings after converting from steel wheels to
Alcoa’s forged aluminum wheels.
Alcoa’s Dura-Bright EVO surface-treated wheel is 10 times
more resistant to corrosion primarily caused by road salts and
weather elements than its predecessor, the Dura-Bright wheel
with XBR® technology. Unlike competitive surface coatings that can
crack, peel, corrode and dull quickly, the Dura-Bright
surface-treated wheel allows brilliant shine to last even after
years of use, without the need for polishing. Dura-Bright is not a
coating, but rather a surface treatment that penetrates the
aluminum and becomes an integral part of the wheel. Regular
cleaning with commonly used truck cleaning products or with just
soap and water will keep the wheels shiny, even after hundreds of
washes and thousands of kilometers, reducing maintenance costs. In
addition, Alcoa’s wheels are made from one piece of forged
aluminum, making them lighter and five times stronger than steel
wheels, increasing payload and fuel efficiency.
Alcoa has been the forged aluminum wheel leader since inventing
the product in 1948. Alcoa Wheel Products is part of Alcoa’s
value-add businesses, comprising Engineered Products and Solutions
and Global Rolled Products. The company projects its revenues from
wheel products to increase to US$1 billion in 2016 from US$700
million in 2013.
Editor’s Note: Caption for accompanying photo: To meet
growing demand for its innovative wheels, Alcoa has expanded its
wheels manufacturing plant in Hungary (expansion shown here),
doubling its capacity to produce lightweight, durable,
low-maintenance Dura-Bright® EVO surface-treated aluminum truck
wheels.
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
approximately 59,000 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.
About Alcoa Wheel and Transportation Products
Alcoa Wheel and Transportation Products (AWTP), headquartered in
Cleveland, Ohio, is part of Alcoa’s downstream business, Engineered
Products and Solutions. AWTP serves the commercial vehicle,
automotive and defense markets with products used in a range of
applications including forged aluminum wheels, premium products
such as Dura-Bright®, Dura-Flange®, LvL ONE® and M-Series™ medium
duty truck wheels, as well as a variety of other aluminum
components for these markets. AWTP is composed of three divisions:
Commercial Vehicle Wheels, Forged Specialty Wheels and
Transportation Products. Alcoa Wheel Products Europe is
headquartered in Székesfehérvár, Hungary. Alcoa manufactures forged
aluminum wheels for trucks, trailers and buses in Europe. More
information can be found at www.alcoawheels.com. Follow
@AlcoaWheels on Twitter at twitter.com/AlcoaWheels.
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,” “forecasts,”
“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 Alcoa’s strategy, objectives, expectations,
and intentions regarding growing its revenues from its wheel
products, its ability to capture growing European demand for
aluminum truck wheels, and growth in global market penetration of
forged aluminum wheels versus steel. Forward-looking statements are
subject to risks, uncertainties, and other factors and are not
guarantees of future performance. Important factors that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements include: (a) unfavorable
changes in the markets served by Alcoa, including the commercial
transportation market and European aluminum truck wheels market;
(b) failure to successfully implement, or to realize expected
benefits from, new technologies, processes, equipment, expanded
facilities, or innovative products, including Dura-Bright EVO®
surface-treated wheels, whether due to competitive developments,
changes in the regulatory environment, trends and developments in
customer requirements, or other factors; and (c) the other risk
factors discussed in Alcoa’s Form 10-K for the year ended December
31, 2013 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.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150130005083/en/
AlcoaInvestor ContactKelly Pasterick, + 1
212-836-2674Kelly.Pasterick@alcoa.comorMedia ContactChrista Bowers,
+ 1 212-836-2605Christa.Bowers@alcoa.comorAlcoa EuropeJasper van
Zon, + 31 (0) 416 300 350Jaspervan.Zon@alcoa.com
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