Alcoa Corp., Pittsburgh, announces that it has completed the separation from its parent company Alcoa Inc. (now named Arconic Inc.) and has begun operating as an independent, publicly traded company listed on the New York Stock Exchange under the symbol AA. Alcoa Corporation is a globally cost-competitive industry leader in bauxite, alumina, and aluminum products, positioned to succeed throughout the market cycle.
The separation was completed through a pro rata distribution by Alcoa Inc. of 80.1% of the outstanding shares of the newly formed Alcoa Corporation. Arconic will retain 19.9% of Alcoa Corporation common stock.
“We are launching Alcoa Corporation as a world leader in the aluminum industry with distinct competitive advantages across the value chain,” says Roy Harvey, Chief Executive Officer of Alcoa. “Our bauxite and alumina portfolios enjoy strong first quartile cost positions and our aluminum portfolio has a highly competitive second quartile position. We’ve made a commercial success of our cast products business. Our can sheet business is a leader in North America, and our substantial energy assets are also driving value for maximum profitability.”
“Today we launch Arconic as a strong independent company,” said Arconic Chairman and CEO Klaus Kleinfeld on Nov. 1. “Our multi-year transformation while part of Alcoa Inc. substantially improved our competitiveness and profitability. Today, we are very well positioned as a leader in attractive markets.”
Within aerospace, which accounts for approximately 40% of Arconic total revenues, the company develops and manufactures high-performance, engineered products and solutions for airframe structures and aero engines. Since 2008, the company has significantly grown its capabilities through a combination of organic and inorganic technology and innovation-focused investments.
As a result, Arconic has gained significant share on next generation aero engines and aero structures. The company can today supply over 90% of the components within the jet engine, and it is a leader in structural parts for both metallic and carbon fiber reinforced plastic (CFRP) aircraft. In fact, 85% of aerospace revenues come from products where it holds either the number one or number two market position.
In the North American automotive market, Arconic invented the bonding process to enable the mass-market shift from steel to aluminum, and it is today at the forefront of capturing growing demand for aluminum sheet as the industry shifts to light-weighting. The Company expects its North American automotive sheet revenues to grow six-fold, from $229 million in 2013 to $1.3 billion in 2018. Across its North American automotive portfolio, 96% of the company’s revenues come from products where it is number one or number two in its market.
