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Alcoa completes $300 million automotive expansion in Iowa

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Yesterday Alcoa Inc. announced the completion of a $300 million expansion in their Davenport, Iowa facility which supplies aluminum to the automotive industry. Long term supply agreements have been secured for the production in this facility while Alcoa continues to expand their automotive capacity investing $670 million in three facilities. The expansion in the Tennessee facility is scheduled for completion in mid 2015, and the completion in their joint venture in Saudi Arabia is scheduled for the end of 2014.

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"Alcoa executives made the announcement as the 2014 North American International Auto Show (NAIAS) in Detroit displays a number of vehicles featuring large increases in aluminum content. According to automakers, demand for aluminum to produce vehicles—already the second-most-used material used to make cars today—is expected to nearly double by 2025. The amount of aluminum body sheet content in North American vehicles is expected to quadruple by 2015 and increase tenfold by 2025 from 2012 levels."

Last year Metal Bulletin announced Alcoa as the 2013 winner of “Best Product Innovation” at the conference in Geneva. Alcoa 951, the automotive bonding technology, is a pretreatment process that has effectively negotiated the challenge of bonding aluminum to itself or other materials in a durable fashion. The significance of this technology is the impact to the automotive industry as manufacturers are increasing the use of aluminum to produce fuel efficient and environmentally safe vehicles.

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