Nov 15 2005
Alcoa announced today a US $83 million (Euro 70 million) investment in a major modernization project at Alcoa-Kofem Ltd., its operations in Hungary. The modernization includes the expansion of flat-rolled mill products capability and related infrastructure, addition of Dura-Bright aluminum wheel production in Hungary, and launching a new manufacturing operation for airfoil castings. The modernization project will create nearly 200 new jobs at Alcoa-Kofem. Alcoa expects the project to be completed by the end of 2007.
"This decision strengthens Alcoa's presence in Europe and its long-term strategic investment in Hungary," said Bela Forgo, Country Manager Hungary and General Manager, Alcoa-Kofem. "This modernization project renews the product mix at Alcoa-Kofem toward higher value added products."
The core of the investment is the modernization of Alcoa-Kofem's Flat Rolled Products manufacturing unit, which involves expansion of its brazing sheet capability to offer a full range of gauges. Brazing sheet is used primarily in the automotive and heat exchanger markets. Kofem currently produces sheet, coil and some brazing sheet at Szekesfehervar.
In addition, Alcoa-Kofem, which has been producing forged aluminum wheels since 1997, will begin production of Dura-Bright aluminum wheels in Hungary. Dura-Bright is a patented treatment that penetrates the wheels and helps keep them bright and shiny, reduces overall labor costs and downtime, and protects the wheels from oxidation and corrosion. Dura-Bright wheels are available for a broad range of applications including truck and trailer, RV and motor home, and bus and motor coach.
Finally, the new airfoil manufacturing operation in Kofem will support Alcoa Howmet's growing jet aircraft and industrial gas turbines business in Europe.
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