Constellium to build second Body-in-White finishing line in the U.S. to meet increased automotive demand
AMSTERDAM, April 23, 2015 /PRNewswire/ -- Constellium N.V. (NYSE and NYSE Euronext: CSTM) announced today that it has decided to build a second Body-in-White (BiW) finishing line in North America to further support the growing demand for aluminium from the U.S. automotive industry. The investment is expected to reach $160 million and is part of the previously announced $750 million strategic investment plan to increase Constellium's BiW production capacity by 2022.
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The location of the 100,000 metric tons BiW finishing line which is due to start production in early 2018 has not yet been decided and will be announced in due course, pending final business considerations.
"In light of current volume commitments from customers, we have decided to add further capacity and launch the construction of a second BiW finishing line. This move reflects the success of our continued discussions with car manufacturers," stated Pierre Vareille, Chief Executive Officer of Constellium. "Constellium expects to benefit from strong market growth as the integration of aluminium body sheet continues to quickly expand across the U.S. automotive industry. We have an ambitious strategy in this market and are fully on track with our expansion roadmap," he added.
Building on its longstanding partnerships with the automotive industry, its R&D capabilities and its industrial renowned expertise, Constellium is well positioned to support automotive light-weighting both in Europe and in North America. As aluminium continues to displace steel in automotive production due to its safety, environmental and efficiency benefits, Constellium is armed to meet this increased demand with a broad range of innovative products.
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 €3.7 billion of revenue in 2014.
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 aluminium 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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