ALCOA, TENN. — Alcoa (NYSE: AA), a leading producer of fabricated and primary aluminum, has broken ground on a $275 million expansion to its Tennessee Operations, a 2,000-acre complex in the city of Alcoa, Tenn., approximately 15 miles south of Knoxville. The company states the expansion will create 200 permanent full-time jobs when completed in mid-2015.
In addition, construction will create approximately 400 temporary jobs. Physical specifications of the expansion have not been disclosed, but new facilities for the production of high-strength automotive aluminum have been confirmed, as well as conversion of some existing can sheet capacity to automotive capacity.
“This investment will help auto manufacturers make safe, fuel-efficient vehicles that consumers want,” says Klaus Kleinfeld, Alcoa chairman and CEO. “At the same time, we’re bringing jobs to Tennessee and growing our value-added businesses. It’s a great day all around.”
Previously, the Tennessee Operations site has been devoted to the production of can sheet aluminum for beverage cans. The complex currently includes a can reclamation plant and smelter for production of ingots (large solid aluminum bars); hot rolling facilities that reduce ingots to 1/8-inch thick coil; and a continuous cold mill which reduces the aluminum to the width used for cans.
This expansion focused on automotive aluminum manufacture is the second made by Alcoa in North America. The first is in Iowa, where Alcoa’s Davenport facilities are undergoing $300 million in construction to increase automotive capacity.
Tennessee Governor Bill Haslam, U.S. Senator Lamar Alexander, Congressman John Duncan and other local and state officials attended the groundbreaking ceremony held Thursday. As part of the event and in celebration of the 100th anniversary of the Tennessee Operations, the Alcoa Foundation awarded a $50,000 grant to the East Tennessee Historical Society to create an exhibit at the Museum of East Tennessee History on the past, present and future of manufacturing.
Through its many installations located in more than 30 countries, Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and consumer electronics industries. The company was originally founded in 1888.
Alcoa’s stock price closed at $7.81 per share on Thursday, down from $8.54 per share at this time last year.
— John McCurdy