Arconic Wheel and Transportation Products, producer of Alcoa Wheels, as a global key actor that serves the commercial transportation and city bus market with a range of fully forged aluminum wheels, announced another expansion in Hungary to double the capacities of its Székesfehérvár plant.
This plant is the European center of the wheel product division. This greenfield investment is aimed at the high quality and high added-value manufacturing of wheels of heavy duty vehicles.
Arconic's predecessor, Alcoa divided its activities in 2016 and assigned the portfolio characterized by a higher added value and innovation (air transport, automotive industry, military industry, transportation, industrial solutions, building industry, energetics) to Arconic while Alcoa kept the traditional aluminum industry portfolio and energy division (alumina, bauxite, cast products).
Arconic and Alcoa both have subsidiaries in Hungary. The European center of the wheel product division of Arconic affected by this investment in Székesfehérvár, is part of Arconic-Köfém Ltd. As a result of this greenfield investment of EUR 107 million which is supported by a development tax advantage, Arconic will build a new manufacturing hall of 17,000 square meters on a plot of more than 53,000 square meters in the Székesfehérvár industrial park. The installation of new production lines will increase the capacities of the Székesfehérvár wheel plant. Manufacturing is projected to start at the end of 2019 with 200 new jobs.
According to the Hungarian Investment Promotion Agency (HIPA), the project aims to double the production capacities of Arconic Wheels business, due to a growth in demand from European and global markets. Forecasts predict that global sales of commercial vehicle wheels manufactured by the Arconic group are expected to grow by 71% by 2022, since the regulatory framework still provides a favorable environment for the aluminum market. Revenues from capacity expansion may exceed USD 100 million annually by 2023. The first stage of the investment project started in 2014 when the production of titanium-covered screws was located to Nemesvámos, W Hungary.
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