Arconic expands capacity to capture growth in industrial and automotive marketsVolker Karow
Arconic Inc. is investing around USD100 million to expand its hot mill capability and add downstream equipment capabilities.
“This investment will add capacity to meet growing demand for industrial products and automotive aluminium 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.”
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 in Arconic's Tennessee Operations facility near Knoxville, is already underway and is expected to be complete by the fourth quarter of 2020.
The industrial market consists of products made with common alloy aluminium sheet, which is used in applications for commercial transportation, appliances, machinery and construction.
In the automotive market, aluminium is used in applications from bumper to bumper, and demand for automotive aluminium sheet in North America is expected to double in the next ten 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 USD300 million expansion (completed in 2015) to capture growing demand for automotive aluminium sheet.