US-based aluminum producer Alcoa has started expansion of the operations at its plant in Tennessee with an investment of $275m.
The move is expected to meet the growing aluminum demand for auto production, which is forecast to double by 2025.
With the expansion, the company will convert some of the plant's can sheet capacity to produce high-strength automotive aluminum as well as install incremental automotive capacity that will allow its to supply to both the packaging and automotive markets.
Alcoa chairman and CEO Klaus Kleinfeld said, "This investment will help auto manufacturers make safe, fuel-efficient vehicles that consumers want."
The expansion is expected to create additional 200 full time jobs in the region following the completion by mid-2015.
Additionally, the expansion is anticipated to offer about 400 construction jobs during the construction.
The Tennessee expansion is the second major automotive expansion by the company in North America after it had started the commissioning of its Davenport, Iowa plant.
