Alcoa Inc. said Thursday that it will invest about $300 million to expand an Iowa manufacturing plant to produce aluminum to meet growing demand from the automotive industry.
The project will create 150 jobs during construction at the Davenport plant and 150 full-time jobs once it is completed at the end of 2013. That would put the plant's work force at about 2,300.
The aluminum manufacturer, which is based in New York, said one of the reasons it selected the Davenport location was an incentive package from the Iowa Department of Economic Development that consists of tax, financing, and research and development credits as well as training grants. The value of the total package was not immediately available.
"The automotive market has long lead times and much of this expansion ... is for business already secured," Helmut Weiser, an Alcoa vice president, stated in a news release. "However, we see huge opportunity beyond this for our leading technology solutions in this market."
The plant in Davenport also produces material used in aerospace and defense, among other products.
Shares of Alcoa rose 22 cents to $11.95 in late afternoon trading.