Alcoa Will Invest $300 Million to Expand Davenport Facility
Alcoa plans to expand its Davenport, Iowa, rolled products plant in a $300 million project designed to meet rising demand from the automotive market.
“The automotive market is a tremendous growth opportunity for Alcoa over the next several years,” says Klaus Kleinfeld, Alcoa chairman and CEO. “Our leading-edge technology solutions and our world-class manufacturing capabilities, combined with our dedicated and highly-engaged workforce, put us in an enviable position in the market and bode well for future growth.”
A study of automakers by Ducker Worldwide, released earlier this month, shows automakers will increase their use of aluminum from 327 pounds per vehicle in 2009 to 550 pounds in 2025. For 2012 model cars, the use of aluminum has reached an all-time high of 343 pounds per vehicle, a 5 percent increase. According to OEMs surveyed in the study, aluminum use as a percent of the overall automotive materials mix is expected to double by 2025 to 16 percent.
“The automotive market has long lead times and much of this expansion is for business already secured,” says Helmut Wieser, executive vice president and group president of Alcoa Global Rolled Products. “However, we see huge opportunity beyond this for our leading technology solutions in this market, including our patented Alcoa 951 technology, which we expect to license throughout the industry.”Alcoa 951 is used to improve adhesive bonding for vehicle assemblies.
Alcoa Davenport Works produces aluminum sheet and plate for a variety of industries through its 220-inch wide mill, the largest in the world. Materials produced at the plant are used in aerospace and defense, passenger vehicles, commercial truck and rail transportation and the industrial market.