The History of Alcoa in Hungary
Alcoa acquired majority stake of the Light Metal Works of Székesfehérvár (now Alcoa-Köfém Kft.) in 1993 of which it has had full ownership since 1996. As a result of continuous investments and developments, Alcoa is the 6th largest overall investor and the 2nd largest American investor in Hungary.
At present four manufacturing branches are parts of Alcoa-Köfém Ltd. in Hungary: the European Mill Products (EMP), combining Casthouse and Flat Rolled Products, Alcoa Wheel and Transportation Products (AWTP), Alcoa Fastening Systems (AFS), and Alcoa Power and Propulsion (APP) Howmet castings, a plant for castings used in industrial gas turbines and jet engines. The two global business service units - Financial and Administrative and the Information Datacenter - were also established in the company’s headquarters in Szekesfehervar.
In November of 2005, Alcoa made a decision to develop its Hungarian subsidiary, Alcoa-Köfém Kft., for $84 million (17.5 billion Forints). The investments, for which the company received non-returnable state funding, created almost 200 new jobs and were fully realized by the end of 2007. The modernization project yields in shifting Köfém’s product-mix to a range of higher value-added products, thereby underpinning its competitive operation. It strengthens Alcoa's presence in Europe and its long-term strategic investment in Hungary, emphasized Dr. Béla Forgó, Alcoa’s Country Manager Hungary and General Manager of Alcoa-Köfém Kft.
The central element of the investments is the modernization/upgrade of the rolling mill (EMP) manufacturing unit. The production of ultra-thin aluminum plates, used in the automotive industry for heat exchange became possible, which were never before produced by Alcoa-Köfém Kft.
Another significant development took place in the wheel product (AWPE) manufacturing unit, which has been producing aluminum wheel disks for heavy vehicles, trailer trucks, towers and buses since 1997. Within the scope of the investment, the introduction of the DuraBright® surface treatment, developed and patented by Alcoa, also took place. This technology, which protects wheels from corrosion, maintains their shine and sheen and allows for easy cleaning, was previously only used in the USA and Mexico by Alcoa.
The third element of the developments is the deployment of Alcoa Howmet (Power & Propulsion) unit within Alcoa-Köfém Kft. The new plant performs work and quality assurance on the precision castings making up components of the industrial gas turbines and propulsions manufactured using super-alloys.
Lastly, these upgrades made the extension of the company’s infrastructure (i.e. energy system, internal road network, truck gates) a necessity.
An integral part of Alcoa’s corporate culture is social responsibility, as well as commitment to sustainable development, which is a valid requirement of all of its companies. This company philosophy integrates the objective of improving performance with social sensitivity, solidarity toward society, environmentally friendly activities, as well as labor safety and health protection without compromise. In this regard, Alcoa-Kőfém Kft. represents exemplary performance acknowledged by several countries, as well as locally.
The leader of Alcoa Corporation’s humanitarian activities is the Alcoa Foundation, established in 1952, which operates independently from the parent company both legally and with respect to business results. It runs on the investment returns of its own funds. It has become a leading international resource with the exclusive responsibility of supporting communities in contact with Alcoa. The Foundation has spread to supporting Hungarian civil organizations since 1993, the beginning of Alcoa’s presence in Hungary. Between 1993 and 2010, it has contributed $5.8 million in to more than 400 projects including Hungarian education, health care, environment protection, sustainability and other projects aimed at cultural and social initiatives.
According to our employee volunteer programs named ACTION and Bravo!, Alcoa Foundation has made additional $1.1 million payment to the non-profit sphere.
This makes Alcoa the largest patron-like donator in Hungary.
Alcoa has become an integral contributor to Hungary’s economy and charity work for which it has achieved appropriate governmental and community acknowledgement.