US-based aluminium producer, Alcoa will invest $275m over the next three years to expand and convert capacity at its rolling mill in Tennessee, US.
The move is part of the company's aim to meet the growing demand for light, durable and recyclable aluminum sheet for automotive production.
The expansion will help in supporting automotive producers' plans to utilise more aluminium sheet to increase fuel efficiency, safety, durability and performance of cars and light trucks.
Earlier in September 2011, the company has invested $300m to expand its Davenport, Iowa plant which is scheduled to be completed by the end of 2013.
Alcoa chairman and CEO Klaus Kleinfeld said, "More and more auto producers are turning to aluminum to increase the fuel efficiency and quality of their vehicles - we anticipate a quadrupling of auto sheet volume by 2015 and a tenfold increase by 2025."
As part of the expansion, the company will convert some of the plant's can sheet capacity to high-strength automotive aluminum capacity and also install incremental automotive capacity.
Expansion at the Tennessee plant is scheduled to commence immediately and is expected to be completed by mid-2015.
Following completion, the plant will serve both the packaging and automotive markets, while most of the components produced are already secured under long-term supply agreements.
