A-CMI to Establish First European Manufacturing Plant in Norway

A-CMI, the partnership between Alcoa (Aluminum Company of America) and CMI International, is planning to build its first European manufacturing plant in Lista, Norway. The facility will produce cast aluminum parts for the European car industry, starting in 1997, and represents an investment of 260 million kroner ($40 million). The plant will be built in close proximity to an Elkem aluminum plant, with Elkem Aluminium ANS being a part owner in the company. A-CMI is a newly-established company for the development and production of chassis, suspension, brake, and powertrain components and systems in aluminum.

Key Takeaways:

• A-CMI will establish its first European manufacturing plant in Lista, Norway, with an investment of 260 million kroner ($40 million).
• The plant will produce cast aluminum parts for the European car industry, starting in 1997.
• Elkem Aluminium ANS will be a part owner in the company, providing molten aluminum to the new car parts factory.
• The plant will include a development center producing pilot products for the European car industry, as well as facilities for engineering, design, marketing, and sales.
• A-CMI's Lista operation will initially produce structural parts such as aluminum crossmembers, steering knuckles, and control arms, which will replace heavier steel or iron parts in vehicles of the future.
• The plant will be Europe's largest producer of aluminum crossmembers and steering knuckles.
• A-CMI views Norway as an exciting growth and investment area due to its proximity to the aluminum community, access to a highly-educated workforce, and high-technology competence.
• The plant will benefit from year-round shipping from the port of Lista, providing ready access to A-CMI customers throughout Scandinavia and Continental Europe.

Statistics:

• The plant investment is valued at 260 million kroner ($40 million).
• The facility will produce 60,000 units of aluminum parts per year, with an expected annual production value of $150 million.
• Elkem will provide A-CMI with highly qualified support personnel and expertise, totaling 1,000 employees at Lista.
• A-CMI has 5,000 employees spread over ten operations in the US and Mexico, with Alcoa owning a majority stake in the company.
• Alcoa is the world's largest producer of aluminum, with operations in 24 countries and 60,000 employees.

Sources:

• "A-CMI to Establish First European Manufacturing Plant in Norway" (Business Wire, Sept. 11, 1995)
• Contact: Diane M. Zekind, 810/399-9600