Alcoa (NYSE: AA) today announced it has completed a $300 million
expansion at its Davenport, Iowa facility dedicated to supplying
aluminum sheet products to the automotive industry.
Alcoa executives made the announcement as the 2014 North American
International Auto Show (NAIAS) in Detroit displays a number of vehicles
featuring large increases in aluminum content. 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 (click
here for more info).
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. A superior product to the previous industry
standard, Alcoa has licensed the Alcoa 951 technology at the request of
auto manufacturers to make it available across the industry. Alcoa’s
three expansions will incorporate, through its supply chain, the
proprietary Alcoa 951 pretreatment bonding technology (click
here for more info).
The Davenport, Iowa expansion is creating 150 full-time jobs and created
a further 150 jobs during the construction phase.
Note: For B-roll footage and photos of the Davenport automotive
expansion, visit http://www.alcoa.com/car_truck/en/info_page/media.asp.
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 and today is a leader in
delivering value-add products made from a range of lightweight metals
and flat-rolled aluminum. Alcoa is also the world’s leading producer of
primary aluminum, as well as the world’s largest miner of bauxite and
refiner of alumina. Alcoa has been a member of the Dow Jones
Sustainability Index for 12 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 60,000 people in 30
countries around the world. 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.
Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact
Monica Orbe, 212-836-2632
Monica.Orbe@alcoa.com