Industry

Nissan, Arconic invest in Tennessee

The automaker plans to open an advanced technology training center while the materials supplier is expanding an aluminum mill.

Cleveland, Ohio – Tennessee got a load of great news Wednesday as Nissan began construction on a new training center, and Arconic officials announced a $100 million expansion to mill operations.

In Tennessee, Nissan has assembly and powertrain manufacturing operations, and construction began on a 21,000ft2 advanced technology training center adjacent to the powertrain plant. Once finished, it will have the capacity to train 180 employees simultaneously in production, maintenance, engineering, and management.

“This new training center underpins Nissan’s commitment to upskilling our workforce in advanced manufacturing technology, as well as our commitment to Franklin County,” said Brian Sullivan, vice president, Powertrain and Battery Operations, Nissan North America Inc.

The facility is expected to open in fall 2019.

The Nissan Decherd Powertrain Plant is the highest-volume powertrain plant in the U.S., producing more than 1 million engines annually. The plant employs 1,700 people and has built nearly 13 million engines since opening in 1997.

About 150 miles east of Decherd, on the outskirts of Knoxville, Arconic announced plans to expand its Alcoa, Tennessee, hot mill to add more capacity for automotive aluminum products. Customers have already committed to using most of the materials made possible by the $100 million expansion.

The project, which is expected to create 70 new jobs, is already underway and is expected to be complete by the fourth quarter of 2020.

“This investment will add capacity to meet growing demand for industrial products and automotive aluminum sheet,” said Tim Myers, president of Arconic’s Global Rolled Products business. “With this expansion, we are further diversifying the portfolio of one of our largest North American facilities.”

In the automotive market, aluminum is used in applications from bumper to bumper, and demand for automotive aluminum sheet in North America is expected to double in the next 10 years, according to a report published in July 2017 by independent research firm Ducker Worldwide.

Arconic’s expansion of the Tennessee facility’s capacity continues its growth strategy which originated with its $300 million expansion (completed in 2015) to capture growing demand for automotive aluminum sheet.