Arconic Inc. (NYSE: ARNC) today announced plans to install a new horizontal heat treat furnace at its Davenport Works facility in Iowa. Heat treatment is a required step in the production of certain high-strength products, and is essential for products intended for large aerospace and industrial applications.
This new furnace will enable Arconic to heat treat longer and thicker plate than ever before, including material for Arconic’s recently installed Thick Plate Stretcher, which began commercial production this year and is the largest thick plate stretcher in the world. Need for thick aluminum plate is growing, particularly as demand for composite wings, made with monolithic thick plate wing ribs, increases.
“This investment will help meet both existing and future customer demand,” said Tim Myers, President, Global Rolled Products and Transportation and Construction Solutions. “With this new capability, we will meet increasing demand for plate used for aircraft wing ribs, skins and other structural components, particularly in single-aisle builds. It also opens the door to growth in other markets, such as semi-conductors for consumer electronics and injection molding for automotive applications.”
The $137 million investment is supported by economic development financial assistance from the Iowa Department of Economic Development (IDED) and the City of Riverdale. Once the contract is finalized, the assistance will include tax, financing and R&D credits as well as training grants for the Davenport workforce and new employees.
“Arconic has been a great Iowa partner, and job creator,” said Iowa Economic Development Authority Debi Durham. “We look forward to continuing the relationship with this latest project.”
Construction on the project is expected to begin late this year with commercial production expected to start in 2019.
Arconic (NYSE: ARNC) creates breakthrough products that shape industries. Working in close partnership with our customers, we solve complex engineering challenges to transform the way we fly, drive, build and power. Through the ingenuity of our people and cutting-edge advanced manufacturing techniques, we deliver these products at a quality and efficiency that ensure customer success and shareholder value. For more information: www.arconic.com. Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and YouTube.
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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,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “guidance,” “goal,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of similar meaning. All statements that reflect Arconic’s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding the aerospace and other end markets, and customer demand. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. It is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties, including, but not limited to, deterioration in global economic and financial market conditions generally, unfavorable changes in the aerospace and other end markets, and the risk factors summarized in Arconic’s Form 10-K for the year ended December 31, 2016, Arconic’s Form 10-Q for the quarter ended June 30, 2017 and other reports filed with the U.S. Securities and Exchange Commission. Arconic disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks discussed above and other risks in the market.
Patricia Figueroa, 212-836-2758
Tracie Gliozzi, 412-553-1345