Expansion Management

Tennessee Expansion Due to Auto Demand for Aluminum Says Alcoa CEO

May 7, 2013

'More and more auto producers are turning to aluminum to increase the fuel efficiency and quality of their vehicles – we anticipate a quadrupling of auto sheet volume by 2015 and a tenfold increase by 2025,' Alcoa CEO Klaus Kleinfeld said.

Adrienne Selko

To meet the growing demand for light, durable and recyclable aluminum sheet for automotive production, Alcoa (IW 500/48) announced last week that it will expand its rolling mill in Tennessee.

The expansion represents a $275 million investment over the next three years and will add 200 permanent full-time jobs upon completion, as well as 400 jobs during the construction phase.

“Our Tennessee expansion is a great example of how Alcoa’s edge in technology and innovation is capturing growth opportunities in our value-added mid- and downstream businesses,” Alcoa CEO Klaus Kleinfeld said.

“More and more auto producers are turning to aluminum to increase the fuel efficiency and quality of their vehicles – we anticipate a quadrupling of auto sheet volume by 2015 and a tenfold increase by 2025,” Kleinfeld added.

The project will convert some of the plant’s can sheet capacity to high-strength automotive aluminum capacity, as well as install incremental automotive capacity. The Blount County expansion is scheduled to begin this month and be completed by mid-2015. When completed, the plant will be a key supplier to both the packaging and automotive markets. Much of the volume for the automotive expansion is already secured under long-term supply agreements.

“It is particularly gratifying to make this investment in our namesake community this year, which is both the 100^thanniversary of our Tennessee operations as well as the 125^thanniversary of Alcoa,” Kleinfeld added. “We have a very dedicated and highly engaged workforce in Tennessee and a very supportive community.”

Workforce is a key focus of Tennessee. “Our Jobs4TN strategy identifies key industry clusters where Tennessee holds a unique competitive advantage, and we are grateful Alcoa is expanding its presence and joining in our state’s continued growth in the automotive sector,” said Tennessee Gov. Bill Haslam.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.