Alcoa to Separate into Two Companies

Noria news wires

Alcoa recently announced that it plans to separate into two independent, publicly traded companies. The upstream company, which will operate under the Alcoa name, will comprise five business units that currently make up the global primary products segment: bauxite, alumina, aluminum, casting and energy. The innovation and technology-driven value-add company will be named Arconic and will include global rolled products, engineered products and solutions, and transportation and construction solutions.

"In the last few years, we have successfully transformed Alcoa to create two strong value engines that are now ready to pursue their own distinctive strategic directions," said Klaus Kleinfeld, Alcoa chairman and chief executive officer. "After steering the company through the deep downturn of 2008, we immediately went to work reshaping the portfolio."

Kleinfeld will lead the value-add company as chairman and chief executive officer. He will also serve as chairman of the upstream company for the critical initial phase. Each company will have its own independent board of directors that will include members of the current Alcoa board.

After the separation, the upstream company's footprint will include 64 facilities worldwide and approximately 17,000 employees. The value-add company will provide multi-material products and solutions with 157 globally diverse operating locations and approximately 43,000 employees.

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