) announced that it has completed the expansion of aluminum
lithium alloy production capacity at its Kitts Green plant in the
UK to meet the growing demand for aluminum lithium alloys. Alcoa
expects revenues from aluminum lithium to rise four-fold over the
next six years to nearly $200 million.
The Kitts Green expansion, which is the second phase of the
three-part expansion, allows airframers to build fuel efficient
and lower-cost airplanes versus composite alternatives. Alcoa
stated that the Kitts Green expansion will allow the company to
serve the growing demand for its third generation aluminum
lithium alloys better. According to Alcoa, the new aluminum
lithium alloys provide excellent performance in terms of
stiffness, damage tolerance and resistance of corrosion.
At the last Paris Air Show, the third-generation aluminum
lithium alloys showed that they have the potential to increase
fuel efficiency, reduce inspection intervals, improve passenger
comfort and lower capital costs for aerospace manufacturers.
Alcoa received a very positive response, where the demand
exceeded its production capacity. This encouraged Alcoa to take
initiatives for expanding its aluminum lithium operations at
three locations across the globe.
Alcoa's third phase of expansion, which is a $90 million
facility adjacent to its Lafayette, Ind. plant, is currently
under construction. The expansion is expected to be completed and
be online by the end of 2014. Alcoa expects the facility to
produce additional 20,000 metric tons of aluminum lithium.
Alcoa, which is among the prominent players in the mining
industry along with
Aluminum Corporation of China Limited
Atlatsa Resources Corporation
BHP Billiton Limited
), is a world leader with respect to production and management of
primary aluminum, fabricated aluminum, and alumina as well as the
world's largest miner of bauxite and refiner of alumina.
Alcoa currently retains a short-term Zacks Rank #4 (Sell).
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