ALCOA, Tenn. (AP) — ALCOA says resurgent auto manufacturing is creating demand for its aluminum products and it will expand its plant in Tennessee.

The Daily Times ( ) first reported the company will create 200 new jobs with a $275 million expansion of its rolling mill in Alcoa, Tenn. Some 400 construction jobs will be created in building it.

Expanded North American automotive sheet capacity will support auto producers' plans to use more aluminum sheet to increase fuel efficiency, safety, durability and performance of cars and light trucks.

"More and more auto producers are turning to aluminum to increase the fuel efficiency and quality of their vehicles," ALCOA Chairman and CEO Klaus Kleinfeld said. "We anticipate a quadrupling of auto sheet volume by 2015 and a tenfold increase by 2025."

The Tennessee Operations rolling mill currently only produces sheet for aluminum cans.

Construction will take place over the next three years with work beginning this month.

ALCOA previously announced a $300 million expansion of its Davenport, Iowa, plant, which is set to be completed by the end of this year.

The project will use the proprietary "ALCOA 951" pretreatment bonding technology. The process allows adhesive bonding of automotive structures and is facilitating more cost-effective, mass production of vehicles that use a lot of aluminum.