Alcoa forms automotive alliance

announced today that it has signed an agreement with

Hong Kong to form an alliance to produce cast aluminium chassis and suspension components and modules. The alliance will serve the automotive industry in

,

,

and the Asia Pacific region.

Under the agreement, Alcoa plans to license its Vacuum Riserless and Pressure Riserless Casting (VRC/PRC) technology and sell related production assets.

SMW Hong Kong’s new wholly owned subsidiary, Alutech Automotive Parts of China, will establish an aluminium casting plant in Wuhan, Hubei Province, China to supply OEMs in Asia with cast structural parts using Alcoa's proprietary technology.

The plant is slated to be operational in 2008. In addition, the agreement provides the framework for both companies to identify, develop and launch programs.

‘This marks our official establishment of a commercial footprint in China and complements and adds to Alcoa’s current VRC/PRC aluminium casting capabilities in the US and Europe,’ said Misha Riveros Jacobson, President, Alcoa Auto and Truck Structures.