Kaiser Aluminum Announces Further Expansion at Trentwood Facility to Increase Heat Treat Plate Production
Kaiser Aluminum Corporation (NASDAQ: KALU) today announced an additional expansion of heat treat plate capacity at its Trentwood, Wash., rolling mill. The $34 million follow-on investment, when coupled with $105 million of investments announced in October 2005 and August 2006, will more than double Kaiser’s previously available plate capacity.
“Demand continues to remain strong for aerospace, defense and general engineering applications, and a further investment to expand our heat treat plate capacity enables us to serve the growing needs of our customers,” said Jack A. Hockema, chairman, president and CEO, Kaiser Aluminum. “This additional expansion is supported by solid customer commitments.”
“The previously announced phases of the heat treat plate project remain on schedule,” added Hockema. “Two heat treat furnaces were fully operational in the first quarter of 2007, and the stretcher and the third heat treat furnace are expected to be on-line early next year. We expect this incremental $34 million expansion to be fully operational by the end of 2008.”
Kaiser Aluminum is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, and automotive and custom industrial applications. The company has more than 2,000 employees and 11 plants in North America and produces more than 500 million pounds annually of value-added sheet, plate, extrusions, forgings, rod, bar and tube. For more information, please see www.kaiseraluminum.com.
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Certain statements in this release relate to future events and expectations and, as a result, constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of the company to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) the effectiveness of management’s strategies and decisions; (b) adverse changes in economic or aluminum industry conditions generally; (c) adverse changes in the markets served by the company, including the aerospace, defense, general engineering, automotive, distribution and other markets; (d) the company’s ability to complete its expansion projects as planned and by targeted completion dates; (e) the company’s ability to meet contractual commitments and obligations to supply products meeting required specifications; (f) the company’s inability to achieve the level of cash generation, margin improvements, cost savings, or earnings or revenue growth anticipated by management; (g) developments in technology used by the company, its competitors or its customers; (h) changes in laws, governmental regulations or policies, currency exchange rates or competitive factors in the markets served by the company; (i) customer performance; (j) significant legal proceedings or investigations adverse to the company, including environmental, product liability, safety and health and other claims; and (k) the other risk factors summarized in the company’s Form 10-K for the year ended December 31, 2006 and other reports filed with the Securities and Exchange Commission.