Arconic Expands Capacity to Capture Growth in Industrial and Automotive Markets

February 13, 2019
  • Approximately $100 million expansion supports Company’s strategy to capture growing demand for industrial products and automotive aluminum sheet
  • Enhances capabilities and adds capacity backed by customer commitments

NEW YORK & ALCOA, Tenn.–(BUSINESS WIRE)–Arconic Inc. (NYSE: ARNC) today announced an investment of approximately
$100 million to expand its hot mill capability and add downstream
equipment capabilities to manufacture industrial and automotive aluminum
products in its Tennessee Operations facility near Knoxville, Tennessee.
Customer commitments for the majority of the anticipated increase in
capacity are already in place, and the remainder is expected to be
filled by projected customer demand. The project, which is expected to
create 70 new jobs, is already underway and is expected to be complete
by the fourth quarter of 2020.

“This investment will add capacity to meet growing demand for industrial
products and automotive aluminum sheet,” said Tim Myers, President of
Arconic’s Global Rolled Products business. “With this expansion, we are
further diversifying the portfolio of one of our largest North American

The industrial market consists of products made with common alloy
aluminum sheet, which is used in applications for commercial
transportation, appliances, machinery and construction.

In the automotive market, aluminum is used in applications from bumper
to bumper, and demand for automotive aluminum sheet in North America is
expected to double in the next 10 years, according to a report published
in July 2017 by independent research firm Ducker Worldwide. Arconic’s
expansion of the Tennessee facility’s capacity continues its growth
strategy which originated with its $300
million expansion (completed in 2015)
to capture growing demand for
automotive aluminum sheet.

Dissemination of Company Information

Arconic intends to make future announcements regarding Company
developments and financial performance through its website at

About Arconic

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
Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and YouTube.

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,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“goal,” “guidance,” “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, expectations relating to the Tennessee Operations facility
expansion, and growth in the industrial and automotive markets. These
statements reflect beliefs and assumptions that are based on Arconic’s
perception of historical trends, current conditions and expected future
developments, as well as other factors Arconic believes are appropriate
in the circumstances. Forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and changes
in circumstances that are difficult to predict, which could cause actual
results to differ materially from those indicated by these statements.
Such risks and uncertainties include, but are not limited to: (a)
deterioration in global economic and financial market conditions
generally; (b) unfavorable changes in the markets served by Arconic,
including the industrial and automotive markets; (c) Arconic’s inability
to realize expected benefits, in each case as planned and by targeted
completion dates, from acquisitions, divestitures, facility closures,
curtailments, expansions, or joint ventures; (d) the risk that Arconic
is unable to supply customers in the quantities or by the dates required
or as otherwise expected; and (e) the other risk factors summarized in
Arconic’s Form 10-K for the year ended December 31, 2017 and other
reports filed with the U.S. Securities and Exchange Commission. Market
projections are subject to the risks discussed above and other risks in
the market. Arconic 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.

Investor Contact
Paul T. Luther
(212) 836-2758

Media Contact
Tracie Gliozzi
(412) 553-1345