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Aleris Unveils New Aluminum Automotive Body Sheet Production Facility in Lewisport, Kentucky

Capability to Meet Growing Demand For Wide Automotive Body Sheet

Nov 16, 2017

CLEVELAND, Nov. 16, 2017 /PRNewswire/ -- Aleris today announced the opening of its aluminum automotive body sheet production facility in Lewisport, Kentucky.  The project, which represents a $400 million investment, positions Aleris to meet significant growth in North American automotive demand as the industry pursues broader aluminum use for the production of lighter, more fuel-efficient vehicles. The company began shipping automotive products from Lewisport to customers this month.

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"The opening of our new automotive facility in Kentucky marks the completion of a significant piece of our strategic realignment, which includes expanding our capacity and capabilities to serve the automotive industry and other high value end uses,"  Aleris Chairman and CEO Sean Stack said.  "As an experienced supplier to automotive manufacturers in Europe, we look forward to partnering with customers more closely now in North America to bring them the most advanced auto body sheet products in the industry."

Lewisport is the company's first site in North America that is equipped with aluminum auto body sheet finishing capabilities.  Announced in 2014, the expansion includes the addition of heat treatment and finishing capabilities, including a new wide cold mill, two continuous annealing lines and an automotive innovation center, which includes a state-of-the-art research and development center in Detroit. 

"Strong customer collaboration in research and development has been a key component  of our success in serving the global automotive industry, and we look forward to building on that success with this expansion in North America," said Andreas Gondorf, vice president, Aleris Global Automotive. 

The projections for growth in demand for aluminum auto body sheet over the next ten years are significant.  A recent study of North American light vehicle aluminum content released by Ducker Worldwide states that over the next decade, automakers will continue to increase the adoption of high-strength, light-weight aluminum in new car and truck construction at a faster pace than at any time in history.*

The properties of aluminum, which include its formability, recyclability, and high strength-to-weight ratio, make it an excellent solution for automotive manufacturers as they work to produce lighter vehicles that will meet more stringent fuel emissions in the United States.

Aleris has served the automotive industry from its facility in Duffel, Belgium for many years.   Including Lewisport, the company has 9 rolled aluminum products facilities in North America, the majority of which serve building & construction, truck-trailer, and metal distribution customers. 

About Aleris

Aleris is a privately held, global leader in aluminum rolled products production. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.

*Aluminum Content in North American Light Vehicles 2016-2028, Ducker Worldwide

Forward-Looking Statements

Certain statements included herein may be deemed to be "forward-looking statements" within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words "may," "could," "would," "should," "will," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "look forward to," "intend" and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund capital expenditures. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions or divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers' industries; (4) increases in the cost, or limited availability, of raw materials and energy; (5) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (6) our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt obligations; (7) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry end-uses we serve; (8) our ability to retain the services of certain members of our management; (9) the loss of order volumes from any of our largest customers; (10) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (11) our ability to fulfill our substantial capital investment requirements; (12) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (13) variability in general economic conditions on a global or regional basis; (14) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (15) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (16) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (17) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed facilities; (18) our ability to access credit or capital markets; (19) the possibility that we may incur additional indebtedness in the future; (20) limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under the Senior Notes; and (21) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law.

Website Posting
We use our investor website (investor.aleris.com) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission filings, and public conference calls and webcasts. The content of our website is not, however, a part of this release.

SOURCE Aleris

For further information: Media - Shannon Bennett, 216.910.3664, shannon.bennett@aleris.com or Jason Saragian, 216.910.3670, jason.saragian@aleris.com | Investors - Eric Rychel, 216.910.3229, investor@aleris.com


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