Alcoa plant in Hungary completes modernization project

Alcoa on February 21 announced the completion of a US$83 million (Euro 70 million) modernization investment project at Alcoa-Köfém, its operations in Székesfehérvár, Hungary. The project began in November 2005.

The core of the investment is the modernization of Alcoa European Mill Products, which involves expanding brazing sheet capability to offer a full range of gauges. Brazing sheet is used primarily in the automotive and heat exchanger markets.

In addition, Köfém, which has been producing forged aluminum wheels since 1997, began production of Dura-Bright aluminum wheels in Hungary. Dura-Bright is a patented surface treatment that penetrates the wheels and helps keep them bright and shiny, reduces overall labor costs and downtime, and protects the wheels from oxidation and corrosion. Dura-Bright wheels are available for a broad range of applications including trucks, trailers and buses. This state-of-the-art technology is deployed by Alcoa only in its Hungarian operation, outside the American continent.

The third leg of the investments is the opening of a new manufacturing operation for airfoil castings, supporting the Alcoa Power & Propulsion business unit’s growing jet aircraft and industrial gas turbine business in Europe.

"The modernization project yields in shifting Köfém’s product-mix to a range of higher value-added products, thereby underpinning its competitive operation. It strengthens Alcoa's presence in Europe and its long-term strategic investment in Hungary," said Bela Forgo, country manager for Hungary and general manager, Alcoa-Köfém.

The investments received non-refundable government support and created nearly 200 new jobs.