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9/15/2005
Alcoa Adds Capacity to Its Premium Primary Products Portfolio
Pittsburgh, PA – September 15, 2005 – Alcoa today announced it will expand capacity of the company’s premium primary product manufacturing in response to demand from strategic customers. In total, Alcoa will increase billet capacity by 165,000 metric tons per year (mtpy), foundry ingot capacity by 50,000 mtpy, and cast rod capacity by 90,000 mtpy.
The expansions will take place at the company’s aluminum smelters in Becancour (ABI) and Baie Comeau in Quebec, Canada. Billet production there will be expanded by 75,000 mtpy and 90,000 mtpy respectively. A new state-of-the-art, flexible cast house and cast rod mill will be built in Iceland as part of the new 341,000 metric ton per year (mtpy) Fjardaal smelter which is under construction in eastern Iceland and is scheduled to begin production in 2007. The additional billet capacity is scheduled to be completed by mid-2007. The total cost for these expansions is approximately $125 million.
The new 50,000 mtpy Iceland cast house will be designed and configured for maximum flexibility in product mix in order to quickly respond to market and geographical shifts. A number of products will be made there for customers in a variety of markets, including commodity grade P1020 aluminum, high purity (P0506 - P0610) aluminum ingot, foundry ingot, and cast rod. Ingot forms will include tee bar, continuous cast standard ingot (30 and 50 pound size), and low profile sow.
A 90,000 mtpy modern rod mill will also be created in Iceland, utilizing upgraded technology and systems gleaned from the company’s Reybec rod mill in Becancour, ensuring a high quality product within a competitive cost structure.
“By developing value propositions for our strategic customers, Alcoa has become the supplier of choice for the markets we serve,” said Kevin J. Anton, President – Alcoa Materials Management. “As a result of working closely with our customers, premium product shipments doubled between 2001 and 2005. These new expansions will allow us to meet growing demand and further extend our global reach for premium products, which we are implementing through a coordinated sales and marketing strategy for Asia, South America, Europe, and North America.”
Products from the Iceland cast house will be shipped to North American markets, and duty-free to European markets.
The premium primary products are used in North American and European automotive and commercial transportation market for applications such as wheels, structural castings, and engine blocks, as well as the aerospace, building and construction and industrial products (e.g. overhead transmission cables) markets globally.
The expansions will be implemented as part of Alcoa’s sustainable development practices and will not change the proposed environmental impact of the Iceland smelter, as the potential for a cast house and mill were included in the company’s assessment plans.
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrapâ foils and plastic wraps, Alcoaâ wheels, and Bacoâ household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 131,000 employees in 43 countries and has been named one of the top three most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com.
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