Alcoa, Governor Branstad Break Ground on Automotive Expansion in Davenport, Iowa

March 2, 2012

Alcoa Meeting Growing Demand for Light, Durable Aluminum in Automotive Market

RIVERDALE, Iowa--Alcoa executives today joined Governor Terry Branstad, Lt. Governor Kim Reynolds, and other local and state officials to break ground on a $300 million expansion of its Davenport Works plant here to meet rising demand for aluminum from the automotive market. Car manufacturers have said they plan to grow aluminum use from 343 pounds per car today to 550 pounds by 2025 as they switch from steel to increase the fuel efficiency, safety, durability and performance of the cars they produce.

The expansion will create an additional 150 full time jobs in Davenport once completed, bringing total employment to more than 2,300 high-value jobs. In addition, during construction, an incremental 150 jobs will be created at the plant. The previously announced expansion is expected to be completed by the end of 2013. An economic development incentive package from the Iowa Department of Economic Development (IDED) helped secure the selection of Davenport for the expansion.

Following the expansion, the plant will have more than 130 acres under roof and will generate nearly $5 million a day into the local economy, according to a new economic impact study by the Quad City Chamber of Commerce.

“This is a great day for Scott County and surrounding communities. We are proud to have Alcoa filling the world’s needs right here in Iowa. This expansion is a testament to the tremendous Iowa work ethic, and Alcoa’s recognition of what this great area has to offer,” Gov. Terry E. Branstad.

“This is a great celebration. Alcoa’s expansion is occurring because they make great products for their consumers,” said Lt. Gov. Kim Reynolds. “We look forward to Alcoa’s continued future success and are proud to partner with them here in Iowa.”

“This is a great day for Davenport Works and the state of Iowa. It’s a great day for Alcoa. And, a great day for the automotive industry and anyone who drives a car,” said Mark Vrablec, President of Aerospace, Transportation and Industrial & Specialty Products for Alcoa’s Global Rolled Products business. “The growth opportunities in automotive are fabulous. Today marks just the beginning of capturing that opportunity and we are proud it’s happening right here in the Quad Cities.”

Upon completion, materials produced will be used bumper-to-bumper in automobiles and includes Alcoa 951 technology – a state-of-the art pre-treatment that improves adhesive bonding for vehicle assemblies. The process is used to pre-treat aluminum alloy sheet, extrusions and castings to enhance bonding performance and will be licensed across the auto industry.

According to a study of automakers by Ducker Worldwide, released last year, OEMs said aluminum use as a percent of the overall automotive materials mix is expected to double by 2025 to 16 percent.

Alcoa Davenport Works, which last year hosted President Obama, produces aluminum sheet and plate for a variety of industries. Materials produced at the plant are used in aerospace and defense, passenger vehicles (cars and light trucks), commercial truck and rail transportation and the industrial market. Davenport Works opened in 1948 and is one of the largest aluminum fabricating facilities in the world.

About Alcoa

Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and 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 120 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 ten 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 31 countries across the world. More information can be found at

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