New York & Székesfehérvár, Hungary - 17 March 2014 - Alcoa is investing US$13 million to expand its wheel manufacturing plant in Europe, to meet growing demand for its lightweight, durable, low-maintenance aluminum truck wheels. The expansion of the Székesfehérvár, Hungary facility will enable Alcoa to produce twice as many Dura-Bright® EVO surface-treated wheels in Europe by early 2015, compared with current production levels.
“Demand for Alcoa’s forged aluminum wheels continues to grow in Europe, as emissions regulations drive up the need for stronger, lighter and easier-to-maintain wheels that increase payload, reduce maintenance costs and enhance sustainability,” said Tim Myers, President, Alcoa Wheel and Transportation Products. “Additional capacity at our manufacturing facility in Hungary positions us to capture this growth.”
Construction on the production line expansion began in January 2014, with completion expected in early 2015. It will create 35 new permanent jobs and approximately 215 temporary jobs during construction. The Hungarian Government will contribute US$4.4 million toward the construction through its Regional Operative Program, a government-led economic development initiative.
Commenting on the importance of Alcoa to the Hungarian economy, State Secretary for Foreign Affairs and External Economic Relations Péter Szíjjártó, said, “One of the most important players of the Hungarian-American economic cooperation’s success story is Alcoa, bringing innovation-based, high added-value production into Hungary.”
“This expansion will add to Alcoa’s successful portfolio of Hungarian businesses that produce value-added products for the automotive and aerospace industries,” said Dr. Bela Forgo, Country Manager of Alcoa Hungary. “We are pleased to grow our presence in Hungary, a country with a highly skilled workforce and industrial policies supporting investment and technological development.”
Alcoa has been the forged aluminum wheel leader since inventing the product in 1948. Alcoa Wheel Products is part of Alcoa’s value-add businesses, comprising Engineered Products and Solutions and Global Rolled Products. In 2013, Alcoa’s value-add businesses accounted for 57 percent of the Company’s total revenues and 80 percent of segment after-tax operating income.
Alcoa Wheel and Transportation Products (AWTP), headquartered in Cleveland, Ohio, is part of Alcoa’s downstream business, Engineered Products and Solutions. Alcoa Wheel Products Europe is headquartered in Székesfehérvár, Hungary. Alcoa manufactures forged aluminum wheels for trucks, trailers and buses in Europe.