Constellium’s Muscle Shoals facility receives Department of Defense grant to increase casting capacity
Constellium's (NYSE: CSTM) Muscle Shoals facility in Alabama has been awarded a $23 million grant from the U.S. Department of Defense (DoD) to rebuild its Direct Chill aluminium casting center. The funding, provided under the Defense Production Act, will be used to install state-of-the-art casting equipment, potentially adding up to 300 million pounds of annual casting capacity.
This investment aims to increase recycled input, reduce primary metal use, and provide an additional domestic source of aluminium rolling ingot for the U.S. industrial base. The expansion is expected to help meet growing demand for flat rolled aluminium products across multiple industries, including defense, aerospace, automotive, and packaging.
Lo stabilimento di Constellium (NYSE: CSTM) a Muscle Shoals, in Alabama, ha ricevuto un finanziamento di 23 milioni di dollari dal Dipartimento della Difesa degli Stati Uniti (DoD) per ristrutturare il suo centro di colata in alluminio a raffreddamento diretto. I fondi, forniti ai sensi del Defense Production Act, saranno utilizzati per installare attrezzature di colata all'avanguardia, aumentando potenzialmente fino a 300 milioni di libbre di capacità di colata annuale.
Questo investimento mira ad aumentare l'input di materiali riciclati, ridurre l'uso di metalli primari e fornire una fonte domestica aggiuntiva di lingotti di alluminio per l'industria statunitense. Si prevede che l'espansione contribuirà a soddisfare la crescente domanda di prodotti in alluminio laminato piatto in diversi settori, inclusi difesa, aerospaziale, automotive e imballaggio.
La instalación de Constellium (NYSE: CSTM) en Muscle Shoals, Alabama, ha recibido una por parte del Departamento de Defensa de Estados Unidos (DoD) para reconstruir su centro de fundición de aluminio de enfriamiento directo. Los fondos, provistos bajo la Ley de Producción de Defensa, se utilizarán para instalar equipos de fundición de última generación, lo que potencialmente podría añadir hasta 300 millones de libras de capacidad de fundición anual.
Esta inversión tiene como objetivo aumentar la entrada de materiales reciclados, reducir el uso de metales primarios y proporcionar una fuente adicional de lingotes de aluminio para la base industrial de EE.UU. Se espera que la expansión ayude a satisfacer la creciente demanda de productos de aluminio laminado en plano en múltiples industrias, incluidas defensa, aeroespacial, automotriz y embalaje.
앨라배마의 머슬 쇼얼스에 위치한 Constellium(NYSE: CSTM) 시설이 미국 국방부(DoD)로부터 2300만 달러의 보조금을 받아 직접 냉각 알루미늄 주조 센터를 재건축합니다. 이 자금은 방위 생산법에 따라 제공되며, 최첨단 주조 장비를 설치하는 데 사용되며, 연간 최대 3억 파운드의 주조 용량 증가가 예상됩니다.
이 투자는 재활용 입력을 증가시키고, 원금속 사용을 줄이며, 미국 산업 기반을 위한 추가 국내 알루미늄 롤링 인고트 공급원을 제공하는 데 목표를 두고 있습니다. 이 확장은 방위, 항공 우주, 자동차 및 포장 등 다양한 산업 전반에서 평판 알루미늄 제품에 대한 증가하는 수요를 충족하는 데 도움을 줄 것으로 기대됩니다.
Les installations de Constellium (NYSE: CSTM) à Muscle Shoals, en Alabama, ont reçu une subvention de 23 millions de dollars du département de la Défense des États-Unis (DoD) pour reconstruire son centre de coulée d'aluminium à refroidissement direct. Les fonds, fournis dans le cadre de la Defense Production Act, seront utilisés pour installer un équipement de coulée de pointe, permettant potentiellement d'augmenter jusqu'à 300 millions de livres de capacité de coulée annuelle.
Ce financement vise à augmenter les matières recyclées, réduire l'utilisation de métaux primaires et fournir une source domestique supplémentaire de lingots d'aluminium pour l'industrie américaine. L'expansion devrait aider à répondre à la demande croissante de produits en aluminium laminé à plat dans divers secteurs, y compris la défense, l'aérospatial, l'automobile et l'emballage.
Das Werk von Constellium (NYSE: CSTM) in Muscle Shoals, Alabama, hat eine Förderung von 23 Millionen US-Dollar vom US-Verteidigungsministerium (DoD) erhalten, um sein Direktkühl-Aluminiumgusszentrum wieder aufzubauen. Die Mittel, die gemäß dem Defense Production Act bereitgestellt werden, sollen verwendet werden, um modernste Gussanlagen zu installieren, die potenziell bis zu 300 Millionen Pfund jährliche Gusskapazität hinzufügen könnten.
Diese Investition zielt darauf ab, den Recyclinganteil zu erhöhen, den Einsatz von Primärmetall zu reduzieren und eine zusätzliche inländische Quelle für Aluminium-Gussblöcke für die US-Industrie bereitzustellen. Die Expansion wird voraussichtlich dazu beitragen, die wachsende Nachfrage nach flach gewalzten Aluminiumprodukten in verschiedenen Branchen, einschließlich Verteidigung, Luft- und Raumfahrt, Automobil und Verpackung, zu decken.
- Received $23 million DoD grant for capacity expansion
- Potential to add 300 million pounds of annual casting capacity
- Expected increase in recycled input and reduction in primary metal use
- Strengthening domestic supply chain for critical aluminium products
- Addressing growing demand for flat rolled aluminium across multiple industries
- None.
Insights
The $23 million investment from the U.S. Department of Defense (DoD) represents a notable financial boost for Constellium’s Muscle Shoals facility. This influx of capital via the Defense Production Act underscores the strategic importance of the company within the broader industrial framework.
Financial Implications: The increased casting capacity—up to 300 million pounds annually—positions Constellium to cater to growing domestic demand while reducing reliance on imported aluminium slab. From a financial perspective, this could enhance revenue streams and operational efficiency by leveraging recycled inputs and reducing the use of more expensive primary metals.
Given the rising demand for aluminium products in defense, aerospace and other critical industries, Constellium stands to benefit significantly. The potential increase in supply capacity could translate into higher sales volumes and profitability, supporting a more robust balance sheet in the long term.
The strategic partnership with the DoD to expand casting capacity is highly impactful for Constellium from a market positioning standpoint. As the demand for flat rolled aluminium products continues to surge in defense, aerospace, automotive and packaging industries, Constellium is poised to capture a larger market share.
This move could also mitigate supply chain risks by ensuring a steady, domestic source of aluminium rolling ingot, which is important for maintaining production flow and meeting customer demands efficiently. The enhanced capacity should provide a competitive advantage, potentially leading to increased market penetration and customer loyalty.
Additionally, the alignment with national security objectives adds a layer of strategic value, potentially opening doors to more government contracts and long-term partnerships.
The installation of state-of-the-art casting equipment at Constellium’s Muscle Shoals facility signifies a significant technological upgrade. Modern casting technology not only improves production efficiency but also enhances the quality and consistency of the final product.
This technological enhancement is likely to lead to reduced operational costs through improved energy efficiency and minimized waste. Furthermore, the capability to increase recycled input aligns with sustainable manufacturing practices, which are increasingly becoming a focal point for both regulatory compliance and corporate responsibility.
From a technological perspective, this investment underscores Constellium's commitment to maintaining a cutting-edge production facility that can adapt to evolving industry demands and regulatory standards.
PARIS, July 23, 2024 (GLOBE NEWSWIRE) -- Constellium (NYSE: CSTM) announced today that its facility in Muscle Shoals, Alabama has been selected by the U.S. Department of Defense (DoD) for an investment of
The funding was awarded via the Defense Production Act Investments (DPAI) Program. DPAI is overseen by the Manufacturing Capability Expansion and Investment Program (MCEIP) in the Office of the Assistant Secretary of Defense for Industrial Base Policy. Constellium will use the funds to install state-of-the-art casting equipment on the site of a dismantled casting center intended to add up to 300 million pounds of annual casting capacity. With this added capacity, the plant expects to increase its recycled input, reduce its use of primary metal, and provide the U.S. industrial base an additional, self-reliant, domestic source of supply for aluminium rolling ingot.
In recent years, domestic U.S. capacity to cast rolling ingot has lagged the growing demand for flat rolled aluminium products across multiple manufacturing industries, forcing U.S. rolling mills to rely on imported slab to meet customer demand. Flat rolled aluminium products, including sheet and plate, are critical material inputs for the defense, aerospace, automotive, packaging and transportation industries. The expected additional domestic casting capacity enabled by this joint effort with the DoD will help secure the capacity to supply rolling ingot to U.S. rolling mills and provide a vital surge capacity to the DoD if needed to support U.S. security commitments around the globe.
“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,” commented Buddy Stemple, President of Constellium Muscle Shoals. “We are very excited to have this opportunity to partner with the DoD to help strengthen our industrial base.”
Constellium Muscle Shoals is a major aluminium sheet supplier for the packaging and automotive markets. The plant has the capacity to produce over 1 billion pounds per year of finished aluminium coils. Muscle Shoals also operates a world-class recycling center able to recycle the equivalent of 20 billion aluminium cans per year.
About Constellium
Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value-added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated
www.constellium.com
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FAQ
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