Alcoa Completes $300 Million Expansion for Aluminum Vehicles
Alcoa (NYSE: AA) has announced that it has completed a $300 million expansion at its Davenport, Iowa facility dedicated to supplying aluminum sheet products to the automotive industry.
According to automakers, demand for aluminum to produce vehicles—already the second-most-used material used to make cars today—is expected to nearly double by 2025. The amount of aluminum body sheet content in North American vehicles is expected to quadruple by 2015 and increase tenfold by 2025 from 2012 levels.
“2014 marks the beginning of dramatic growth for aluminum in the auto sector,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “Automakers are increasingly choosing aluminum as a cost-effective way to improve the performance, safety, durability and fuel efficiency of their vehicles. Our project in Iowa is the first of three capacity expansions we have underway to meet this growing demand.”
In addition to its expansion in Iowa—for which long-term supply agreements have been secured—Alcoa is adding automotive capacity in Alcoa, Tennessee which is scheduled to be complete in mid-2015; and at its joint venture rolling mill in Saudi Arabia, to be complete by the end of 2014. Alcoa is investing approximately $670 million in the three expansions.
Alcoa innovations are enabling the increased use of aluminum in the automotive sector. Alcoa’s pre-treatment bonding technology, known as Alcoa 951, enables more durable bonding of aluminum components in vehicles, can reduce spot weld points, and results in lower manufacturing costs.
The Davenport, Iowa expansion is creating 150 full-time jobs and created a further 150 jobs during the construction phase.
About Alcoa
Alcoa is a global innovation leader in lightweight metals, products and solutions. Its technology, expertise and industry reach continues to advance automotive and aerospace transportation, building and construction, consumer electronics and packaging, defense applications across air, land and sea, and the oil and gas industry. Alcoa pioneered the modern-day aluminum industry 125 years ago. More information at: www.alcoa.com.
Category: General Update
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