- 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 facilities.”
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.
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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 information: www.arconic.com. Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and YouTube.
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.
Paul T. Luther