Alcoa Inc (NYSE:AA) wants to speed-up auto market efforts
Alcoa Inc (NYSE:AA) has been gaining some reach in the auto market. This has fueled its confidence and is stepping up operations in that direction. AA will be breaking ground on the expansion project for its rolling-mill in Tennessee. This will raise its quota of auto grade aluminum sheet production.
One report stated that the company is planning on investing $275M in the project. This will help meet the increasing demand of the automotive manufacturing industry. This is a very clear indication that the company is placing its bets on the car market in the United States as a long-term game plan. There have been some ups and downs in demand for aluminum in this sector and only time will tell if Alcoa’s plan will bear fruit.
The reason being that there was a 0.4% dip in auto sector production in July. There was a rally in the sector before that but it sort of stalled last month. This was the primary reason for the 0.1% to 95.8 drop that the Chicago Fed Midwest Manufacturing Index experienced. In the meantime, there was a 1.5% rise in production in the steel industry.
In Thursday’s trading session, AA dipped 1.51%. The opening price of the shares was $7.92 which touched an intraday high of $7.94 and closed at $7.81. More than 25.77 million shares were traded on Thursday while the average volume of shares traded over 30 days was 16.61 million. The company has a market cap of $8.36 billion.
Alcoa is involved in producing and managing primary aluminum, alumina and fabricated aluminum. The company’s products are used across the world in the manufacture of aircraft, commercial transportation, automobiles, oil and gas, consumer electronics, industrial applications, defense and building and construction.