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 $23 million under Title III, Defense Production Act to rebuild its Direct Chill aluminium casting center.
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 €7.2 billion of revenue in 2023.
www.constellium.com
Forward-looking statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations; the Russian war on Ukraine; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; supply disruptions; excessive inflation; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
| Media Contacts | ||
| Investor Relations | Communications | |
| Jason Hershiser | Delphine Dahan-Kocher | |
| Phone: +1 443 988-0600 | Phone: +1 443 420 7860 | |
| investor-relations@constellium.com | delphine.dahan-kocher@constellium.com | |
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