Arconic Expands Capacity to Capture Growth in Industrial and Automotive Markets
14 February 2019 - 12:00AM
Business Wire
- 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
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.
Dissemination of Company Information
Arconic intends to make future announcements regarding Company
developments and financial performance through its website at
www.arconic.com.
About Arconic
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.
Forward-Looking Statements
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190213005077/en/
Investor ContactPaul T. Luther(212)
836-2758Paul.Luther@arconic.com
Media ContactTracie Gliozzi(412)
553-1345Tracie.gliozzi@arconic.com
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