Alcoa Completes Automotive Expansion in Tennessee to Meet Strong Demand for Aluminum Vehicles
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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