Northern, WI 03/24/2014 (usastockreport) – Alcoa Inc (NYSE:AA), is investing $13 million in its existing manufacturing plant in Hungry to meet the growing requirement of its aluminum truck wheels which are very light weighted, long lasting and required least maintenance. In this area of technology Alcoa is the pioneer and world leader. Once the expansion of the unit is completed the capacity to produce Dura-Bright® EVO surface-treated wheels of Hungry unit will be doubled in Europe.
Tim Myers, President, Alcoa Wheel and Transportation Products stated that there will be increase in demand of Alcoa’s forged aluminum wheels because of its longevity, low maintenance cost and light weight. So by expanding the Hungry unit we will be able to capture the market demand.
The new Dura-Bright EVO surface-treated wheel has the entire feature same which was in its predecessor. It has been made more impervious to chemical agents such as HCL, chemical which is commonly used in truck washing agents. This allows the use of a wide range of cleaning agents and solutions for easy maintenance. On the other hand it preserves the consistency and shine of the wheel.
The production line expansion plan which begins in January 2014 will be of one year ending in January 2015. With this construction, 35 permanent jobs and around 215 temp jobs will be created for the people Hungary. The Hungarian Government is expected to contribute $4.4 million for the construction via its ROP (Regional Operative Program) a government initiative.
Both Parties Happy With the Developments
Péter Szíjjártó, State Secretary for Foreign Affairs and External Economic Relations pointed out the contribution of Alcoa to Hungarian Economy. Dr. Bela Forgo, Country Manager of Alcoa Inc (NYSE:AA) Hungary said the expansion add glitter to company CV. They are happy to increase their presence in Hungry. Praising Hungry he further added that they have a high skilled workforce and Govt. industrial policies supports technology growth and investment.
Alcoa (NYSE:AA) recent investment in Europe will stand in good stead for the company as opening a new plant would have cost more so company has done well in taking decision for the expansion of existing plant.