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Alcoa to expand North American automotive sheet capacity

Alcoa revealed a second major North American expansion to meet the growing demand for light, durable and recyclable aluminum sheet for automotive production.

Alcoa plans to invest $275 million over the next 3 years to expand and convert capacity at its rolling mill in Alcoa, Tennessee, to support automotive producers’ plans to use more aluminum sheet to increase fuel efficiency, safety, durability and performance of cars and light trucks. Alcoa previously announced a $300 million expansion of its Davenport, Iowa plant which is set to be completed by the end of this year.

The Tennessee expansion will add 200 full-time jobs upon completion. In addition, more than 400 jobs will be created during the construction phase of the expansion. The project will convert some of the plant’s can sheet capacity to high-strength automotive aluminum capacity, as well as install incremental automotive capacity. The Tennessee expansion was scheduled to begin in May and should be completed by mid-2015. When completed, the plant will be a key supplier to both the packaging and automotive markets. Much of the volume for the automotive expansion is already secured under long-term supply agreements.