Alcoa, Pittsburgh, announces that it will separate into two companies: the Upstream Company, which will consist of the Bauxite, Alumina, Aluminum, Casting, and Energy businesses; and the Value-Add Company, which will include the current Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions.
The Upstream Company’s asset base will include the world’s largest bauxite mining portfolio, with 46 million bone-dry metric tons of production in 2014. It has a low 19th percentile position on the global bauxite cost curve. The company will be the world’s fourth largest aluminum producer with a highly competitive second quartile cost curve portfolio. It will have an unrivalled casthouse network in close proximity to customers, and a substantial portfolio of energy assets with power production capacity of approximately 1550 megawatts and operational flexibility to profit from market cycles.
The Value-Add Company will be a premier provider of high-performance multi-material products and solutions with 157 globally diverse operating locations and approximately 43,000 employees. The company will be a differentiated supplier to the high-growth aerospace industry with leading positions on every major aircraft and jet engine platform, underpinned by market leadership in jet engine and industrial gas turbine airfoils and aerospace fasteners. Additionally, the Value-Add Company will be a leader in aluminum commercial truck wheels and will hold the number one market position in North American architectural systems.
The transaction is expected to be completed in the second half of 2016. At that point Alcoa shareholders will own all of the outstanding shares of both the Upstream and Value-Add Companies.
http://www.alcoa.com/two-strong-companies/default.asp
