Alcoa to expand Western Pennsylvania aerospace operations
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Alcoa said today it will build a new plant in Indiana and expand operations in Western Pennsylvania to meet growing aerospace industry demand for a new type of strong, lightweight aluminum alloys.
The New York-based aluminum producer said it will expand capacity at its technical center near Upper Burrell so that it can produce 30 percent more aluminum lithium, which will be used in wings, fuselages and other aerospace applications.
Alcoa said it will spend more than $90 million to build a new plant adjacent to its Lafayette, Ind., mill that will produce more than 20,000 metric tons of aluminum lithium annually. The plant will create 75 permanent jobs in addition to 150 construction-related jobs, Alcoa said.
The company did not put a value on the government tax, financing, and training assistance it will receive for building the plant.
The United Steelworkers union agreed to modify work rules in order to ensure the efficiency of the new plant, Alcoa said.
It also is expanding capacity to cast the new aluminum at its Kitts Green plant in the United Kingdom.
The aluminum producer said the new alloys lower the weight of planes by up to 10 percent compared to planes built with composite materials. They also lower manufacturing, operating and repair costs and are more fuel efficient, Alcoa said.
The announcement was made before Wall Street opened. Alcoa's shares closed Tuesday at $10.21, down 6 cents. They were off 44 percent in 2011.
First Published January 25, 2012 12:00 am
