Alcoa completes $300 million expansion at Davenport facility

WASHINGTON (Scrap Monster): Aluminium major-Alcoa has announced completion of its expansion works at its Davenport facility. The announcement was made at the 2014 North American International Auto Show held in Detroit. Alcoa is believed to have spent nearly $300 million towards the expansion. The expanded facility will supply aluminium sheet products to automotive industry.

The expansion works which started in March 2012 had received an incentive package from the Iowa Department of Economic Development. Around 150 jobs were created during the construction phase.The expansion is expected to create 150 permanent jobs. The company has already entered into long term supply agreements which will aid the company in capturing much of the growing automotive market.

In addition to the Davenport expansion, Alcoa is adding automotive capacity to its Tennessee plant which is expected to complete in mid-2015. The company is also setting up a joint venture rolling mill in Saudi Arabia in partnership with Ma’aden-the Saudi Arabian Mining Company.

According to estimates, the aluminium demand by automotive industry is expected to double by 2025. The aluminium body sheet content of vehicles in North America is expected to increase ten-folds by that time when compared with 2012 levels.

Automaker Ford has already announced launch of 2015 Ford F-150 truck with aluminium body, which would strip off nearly 700 pounds from its weight.