- 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.
Alcoa Investors
Nahla Azmy, 212-836-2674
Nahla.azmy@alcoa.com
or
Alcoa Media
Lori Lecker, 412-553-3186
lori.lecker@alcoa.com