AMSTERDAM, Feb. 12, 2015 /PRNewswire/ -- Constellium N.V. (NYSE and NYSE Euronext: CSTM) announced today that it is investing €22.5 million in its site located in Decin, Czech Republic. The investment, expected to be completed by April 2016, will include a new casthouse, a new indirect extrusion press line for production of hard alloy bars and profiles, a new drawing line, and a complete refurbishment of an existing extrusion line to meet increased demand for drawn bars.
The investment follows a €15 million investment announced in May 2014 that included a new casthouse and extrusion line to increase production of hard alloy extrusions by almost 10,000 tons per year. Both investments further Constellium's strategy of boosting production capacity of high-volume specialty alloy products and extrusions to supply primarily the European automotive market. The plant in Decin mainly serves European automotive Tier One Manufacturers in Germany, Czech Republic, France, Italy, and Switzerland.
"Constellium's continued investment in the plant in Decin will further expand our production capacity and flexibility for aluminium hard alloy bars and profiles to meet increasing demand from our automotive customers across Europe," said Paul Warton, President of Constellium's Automotive Structures and Industry business unit. "The investment we announced today is expected to increase Decin total shipments by 20 percent, from 60,000 metric tons in 2014 to 72,500 metric tons by 2018."
Constellium's Decin plant employs 680 full-time employees, produces semi-finished aluminium products and is the largest integrated hard and soft alloy plant in Europe. The site currently has an integrated foundry, 11 presses for direct and indirect extrusion production as well as equipment for additional downstream operations.
About Constellium
Constellium 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 €3.5 billion of revenue in 2013.
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. Others are more specific to our business and operations. These risks and uncertainties include, but are not limited to, the ability of Constellium and Wise to achieve expected synergies and the timing thereof; the risk that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; Constellium's increased levels of indebtedness as a result of the transaction, which could limit Constellium's operating flexibility and opportunities; the potential failure to retain key employees as a result of the transaction or during the integration of the business, the loss of customers, suppliers and other business relationships as a result of the transaction; disruptions to business operations resulting from the transaction; slower or lower than expected growth in the North American market for Body-in-White aluminum rolled products 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 publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
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SOURCE Constellium
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