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Released July 14, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The "aluminization" of the North American auto continues, which bodes well for aluminum producers like Alcoa Incorporated (NYSE:AA) (New York, New York), the company's top executive said this week. The average amount of aluminum per vehicle in North America is expected to grow by 77 pounds (20%) from 2015 through 2020, according to Alcoa Chief Executive Officer Klaus Kleinfeld. Industrial Info is tracking active aluminum-automotive projects worth at least $4.73 billion globally, including $2.89 billion in North America.
Speaking during the company's second-quarter 2016 earnings conference call Monday, Kleinfeld said aluminum penetration in just automotive hoods is expected to increase to increase from 6% in 2015 to 28% in 2020, while aluminum for vehicle doors will reach 73% penetration by 2020, compared with 43% in 2015. Using the company's trademarked Micromill aluminum casting and rolling system technology, aluminum could increase by an incremental 250 pounds vehicle, replacing steel, he added.
Alcoa's value-added product company split-off, Arconic, will benefit from the growth.
According to The Aluminum Association, lighter aluminum helps vehicles achieve greater fuel efficiency and 90% of automotive aluminum scrap is recovered and recycled.
A study by consultancy and market research firm Ducker Worldwide (Troy, Michigan) found that new pickup trucks contained the most aluminum at 548.9 pound per vehicle in 2015, followed by E segment sedans at 546.9 pounds, SUVs at 410.3 pounds and minivans at 396.5 pounds. The study estimated total aluminum content North American light vehicles produced in North America equaled nearly 7 billion pounds.
Still in the planning phases, Alcoa's San Antonio, Texas, aluminum Micromill plant expansion at its Elmendorf site has a total investment value of $750 million.
Alcoa plans to complete a split into two companies--Alcoa Corporation and Arconic--later this year.For related information, see July 5, 2016, article - Splitsville for Alcoa: Executives Still Mum on Capex for New Companies.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Speaking during the company's second-quarter 2016 earnings conference call Monday, Kleinfeld said aluminum penetration in just automotive hoods is expected to increase to increase from 6% in 2015 to 28% in 2020, while aluminum for vehicle doors will reach 73% penetration by 2020, compared with 43% in 2015. Using the company's trademarked Micromill aluminum casting and rolling system technology, aluminum could increase by an incremental 250 pounds vehicle, replacing steel, he added.
Alcoa's value-added product company split-off, Arconic, will benefit from the growth.
According to The Aluminum Association, lighter aluminum helps vehicles achieve greater fuel efficiency and 90% of automotive aluminum scrap is recovered and recycled.
A study by consultancy and market research firm Ducker Worldwide (Troy, Michigan) found that new pickup trucks contained the most aluminum at 548.9 pound per vehicle in 2015, followed by E segment sedans at 546.9 pounds, SUVs at 410.3 pounds and minivans at 396.5 pounds. The study estimated total aluminum content North American light vehicles produced in North America equaled nearly 7 billion pounds.
Still in the planning phases, Alcoa's San Antonio, Texas, aluminum Micromill plant expansion at its Elmendorf site has a total investment value of $750 million.
Alcoa plans to complete a split into two companies--Alcoa Corporation and Arconic--later this year.For related information, see July 5, 2016, article - Splitsville for Alcoa: Executives Still Mum on Capex for New Companies.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
