Alcoa Breaks Ground on $275 Million Auto Expansion in Tennessee
Tennessee Governor Bill Haslam, U.S. Senator Lamar Alexander, Congressman John Duncan and other local and state officials joined Alcoa (NYSE: AA) Chairman and CEO Klaus Kleinfeld today to break ground on a $275 million expansion of Alcoa’s Tennessee Operations to meet growing aluminum demand for auto production. Aluminum, already the number two material used to build cars, is expected to nearly double by 2025.
The expansion will create an additional 200 full time jobs in Tennessee once completed by mid-2015. In addition, during construction, an incremental 400 construction jobs will be created at the plant. The previously announced expansion will convert some of the plant’s can sheet capacity to high-strength automotive aluminum capacity, as well as install incremental automotive capacity, making it a key supplier to both the packaging and automotive markets.
The Tennessee expansion is the second major automotive expansion by Alcoa in North America to meet car makers’ demand; a $300 million expansion of Alcoa’s Davenport, Iowa plant has already begun commissioning and is set to be completed by the end of 2013. Much of the volume for the automotive expansions is secured under long-term supply agreements.
“This investment will help auto manufacturers make safe, fuel-efficient vehicles that consumers want,” said Alcoa Chairman and CEO Klaus Kleinfeld. “At the same time, we’re bringing jobs to Tennessee and growing our value-added businesses. It’s a great day all around.”
As part of the groundbreaking and the 100th anniversary of Tennessee Operations, Alcoa announced a $50,000 Alcoa Foundation grant to The East Tennessee Historical Society to create an exhibit at the Museum of East Tennessee History on the past, present and future of manufacturing, “100 Years of Manufacturing in East Tennessee: and a Look Ahead at the Next 100 Years”. The exhibit will raise awareness of the evolution of manufacturing, with an emphasis on STEM (science, technology, engineering and math) to promote career options in manufacturing to students and teachers across East Tennessee and help fill the manufacturing skills gap.
“Since its founding, Alcoa has been committed to community partnerships and that is why I am pleased to announce this grant for the East Tennessee Historical Society, which will support the continued advancement of Tennessee’s manufacturing base,” said Kleinfeld.
About Alcoa
Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 125 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for 11 consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 30 countries across the world. For more information, visit www.alcoa.com and follow @Alcoa on Twitter at twitter.com/Alcoa and follow Alcoa on Facebook at www.facebook.com/Alcoa.
Contact
Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
or
Media Contact
Kevin G. Lowery, 412-553-1424
Mobile 724-422-7844
