Constellium was selected by U.S. Department of Defense (DOD) for an investment of $23 million to rebuild its direct chill aluminum casting center at its facility in Muscle Shoals, Alabama.
“This investment under the Defense Production Act will enable our industry to meet the rapidly increasing demand for the aluminum products needed not only for our national security, but also necessary for the overall U.S. manufacturing sector and a healthy economy,” commented Buddy Stemple, president of Constellium Muscle Shoals. “We are very excited to have this opportunity to partner with the DOD to help strengthen our industrial base.”
Increased Demand for Rolling Ingot
In recent years, domestic U.S. capacity to cast rolling ingot has lagged the growing demand for flat rolled aluminum products across multiple manufacturing industries, forcing U.S. rolling mills to rely on imported slab to meet customer demand. Flat rolled aluminum products, including sheet and plate, are critical material inputs for the defense, aerospace, automotive, packaging and transportation industries.
The DOD’s $23 million award to Constellium, which falls under Title III of the Defense Production Act Investments (DPAI) Program, will support the aluminum’s companies growth to address this supply challenge. The investment aims to increase capacity in annual aluminum casting production, secure capability to supply U.S. aluminum rolling mills, and provide surge capacity to support U.S. security commitments around the globe. This effort is in line with the 2024 National Defense Industrial Strategy to continue and expand support for domestic production to increase supply chain resilience.
“Aluminum castings are dispersed across many critical applications in defense — including flight critical structural components, rocket and space systems, and light-weight armor for ground vehicles,” said Dr. Laura Taylor-Kale, assistant secretary of Defense for Industrial Base Policy (ASD(IBP)). “This award will help address capability and capacity challenges that the U.S. aluminum casting industry faces as a result of an insufficient workforce and complex government policies.”
This is the latest of 18 awards made by the DPAI program across multiple areas totaling $381 million since the beginning of fiscal year 2024. DPAI is overseen by the ASD(IBP)’s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) program, in the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
Expanding Muscle Shoals
Constellium Muscle Shoals is a major aluminum sheet supplier for the packaging and automotive markets. The plant has the capacity to produce over 1 billion lbs per year of finished aluminum coils. The site also operates a world-class recycling center able to recycle the equivalent of 20 billion aluminum cans per year, as well as being a major aluminum sheet supplier for the packaging and automotive markets.
With the DOD funds, Constellium will install state-of-the-art casting equipment at the Muscle Shoals site. The new equipment will be housed in an area where a previous casting center had been dismantled.
The expansion will add up to 300 million pounds of annual casting capacity. With this added capacity, the plant expects to increase its recycled input, reduce its use of primary metal, and provide the U.S. industrial base with additional, self-reliant, domestic source of supply for aluminum rolling ingot.