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Alcoa Completes Tennessee Facility Expansion

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Sept. 28, 2015—Alcoa announced on Thursday the completed expansion at its Tennessee facility, which is dedicated to supplying aluminum sheet to the automotive industry.

The plant will provide aluminum sheet to automakers including Ford Motor Company, Fiat Chrysler Automobiles and General Motors.

“Automakers are demanding lighter, stronger materials that improve the performance of their vehicles and Alcoa is at the forefront of capturing that demand,” said Klaus Kleinfeld, Alcoa chairman and chief executive officer. “Through our capacity expansions in Tennessee and Davenport, and breakthrough technologies like the MicromillTM, we have cemented Alcoa’s position as the premier partner to the automotive industry as it turns to aluminum.”

The $300 million project in Tennessee is Alcoa’s second major automotive expansion in North America backed by long-term customer contracts. The first, in Davenport, Iowa, reported record volume of automotive sheet shipments in the second quarter of 2015, up approximately 200 percent from the second quarter of 2014.

The amount of aluminum body sheet content in North America vehicles is expected to grow by three times from 2012 to 2015 and increase elevenfold by 2025 from 2012 levels, according to Ducker Worldwide. Alcoa has estimated that it will grow its automotive sheet revenue from $229 million in 2013 to $1.3 billion in 2018.

The state-of-the-art facility has rolling mill technology that allows it to switch production depending on changing market demands, moving between automotive and can sheet production. The location also has a large recycling facility for automotive scrap which offsets expense, eliminates waste for automakers, lowers operational costs, and reduces Alcoa’s carbon footprint.

The expansion has created approximately 200 full-time jobs.

Thursday’s ribbon cutting was attended by Alcoa executives, Tennessee Governor Bill Haslam and other state and local officials.

“We want to thank Alcoa for this project and the 200 new jobs in Blount County,” said Governor Haslam. “When a world renowned company like Alcoa expands here in Tennessee, it shows we can compete in the global marketplace, and it strengthens Tennessee’s continued growth as a leading automotive manufacturing state.”

The opening of the facility follows Alcoa’s recent announcement of the commercializing of its breakthrough MicromillTM technology.

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