Tuesday, September 03, 2013
Alcoa Breaks Ground on $275 Million Auto Aluminum Expansion
Tennessee Governor Bill Haslam, U.S. Senator Lamar Alexander, Congressman John Duncan and other local and state officials joined Alcoa Chairman and CEO Klaus Kleinfeld to break ground on a $275 million expansion of Alcoa’s Tennessee Operations to meet growing aluminum demand for auto production. According to Alcoa, aluminum use in automobiles is expected to nearly double by 2025.
Originally announced in May, the expansion will convert some of the plant’s can sheet capacity to high-strength automotive aluminum capacity, as well as install incremental automotive capacity. At that time, Kleinfeld stated they anticipated a quadrupaling of auto sheet volume by 2015 and a tenfold increase by 2025.
The Tennessee expansion is the second major automotive expansion by Alcoa in North America to meet car makers’ demand; a $300 million expansion of Alcoa’s Davenport, Iowa plant has already begun commissioning and is set to be completed by the end of 2013.
“This investment will help auto manufacturers make safe, fuel-efficient vehicles that consumers want,” said Alcoa Chairman and CEO Klaus Kleinfeld. “At the same time, we’re bringing jobs to Tennessee and growing our value-added businesses. It’s a great day all around.”