Constellium announced that the U.S. Department of Defence (DoD) has selected its Muscle Shoals, Alabama facility for a $23 million investment under Title III of the Defence Production Act. This funding, awarded through the Defence Production Act Investments (DPAI) Program, will be overseen by the Manufacturing Capability Expansion and Investment Program (MCEIP) within the Office of the Assistant Secretary of Defence for Industrial Base Policy.
About the investment
The investment will support the installation of cutting-edge casting equipment at the site of a previously dismantled Direct Chill aluminium casting centre. This upgrade is expected to boost the plant's annual casting capacity by 300 million pounds. With this increased capacity, Constellium aims to enhance its use of recycled materials, minimise reliance on primary metal, and offer the U.S. industrial base a more resilient and domestic source of aluminium rolling ingots.
In recent years, the domestic U.S. capacity for casting rolling ingots has been struggling to keep up with the increasing demand for flat-rolled aluminium products across various manufacturing sectors. This gap has forced U.S. rolling mills to rely on imported slabs to meet customer needs.
“This investment under the Defense Production Act will enable our industry to meet the rapidly increasing demand for the aluminium products needed not only for our national security, but also necessary for the overall U.S. manufacturing sector and a healthy economy. We are very excited to have this opportunity to partner with the DoD to help strengthen our industrial base,” said commented Buddy Stemple, President of Constellium Muscle Shoals.
Expected outcome of the investment
Flat-rolled aluminium products, such as sheet and plate, are essential for defence, aerospace, automotive, packaging, and transportation industries. The anticipated increase in domestic casting capacity made possible through this collaboration with the DoD, will bolster the supply of rolling ingots to U.S. rolling mills and provide crucial surge capacity for the DoD, ensuring support for U.S. security commitments worldwide.
Constellium's Muscle Shoals facility is a leading supplier of aluminium sheets for the packaging and automotive sectors. The plant can produce over 1 billion pounds of finished aluminium coils annually. Additionally, Muscle Shoals houses a top-tier recycling centre that can process 20 billion aluminium cans each year.
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