Alcoa Inc. completed its separation into two standalone companies — Arconic Inc. and Alcoa Corporation (learn more about Arconic).
Following its separation from Alcoa Inc. (now known as Arconic), Alcoa Corporation has begun operating as an independent, publicly-traded company producing bauxite, alumina, and aluminum products. “We are launching Alcoa Corporation as a world leader in the aluminum industry with distinct competitive advantages across the value chain,” said 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. We achieved all of this during difficult market conditions, remaining resilient thanks to the hard work and dedication of our talented 16,000 employees. As we look towards the future, we intend to continue operating with excellence and innovating within the industry we pioneered, always driven by our values and our strong will to succeed.”
Strength Across the Aluminum Value Chain
Alcoa projects global aluminum demand growth of 5% in 2016 and expects growth to further double between 2010 and 2020. The company believes it is well-positioned to meet this robust demand, with an industry-leading, cost-competitive portfolio comprised of six businesses across the aluminum value chain, including bauxite, alumina, aluminum, cast products, rolled products, and energy. The company’s footprint includes 25 manufacturing facilities worldwide, and approximately 16,000 employees.
Alcoa has the world’s largest bauxite mining portfolio, with 45.3 million bone dry metric tons (bdmt) of production in 2015, and access to large bauxite mining deposits with mining rights that extend in most cases more than 20 years. The company is also the world’s largest alumina producer, with nine refineries on five continents.
The company owns smelting operations in eight countries, including Australia, Brazil, Canada, Iceland, Norway, Saudia Arabia, Spain, and the U.S. The Ma’aden Aluminium smelter in Saudi Arabia — jointly owned by Alcoa at 25.1% and Saudi Arabian Mining Company (Ma’aden) with the remaining shares — is one of the world’s lowest cost fully integrated aluminum production sites, with a bauxite mine, alumina refinery, aluminum smelter, casthouse, and rolling mill.
Under its cast products division, Alcoa operates primary aluminum casthouses that produce a complete portfolio of aluminum billet, foundry ingot, rolling slab, rod, powder, high purity, and P1020, including proprietary alloys uniquely designed for challenging applications.
Alcoa also operates rolling mill operations in Warrick, Indiana, and Ras Al Khair, Saudi Arabia to serve the North American aluminum can sheet market. The Warrick Operations was specifically designed for the rigid container sheet market and continues to produce aluminum sheet used in packaging, including aluminum bottles and food cans. The facility’s capabilities encompass can body stock, can end and tab stock, bottle stock, food can stock, industrial sheet products, and lithographic sheet. Ma’aden Rolling Mill Company, of which Alcoa owns a 25.1% interest, produces can body stock, and can end and tab stock.
The company also maintains a portfolio of energy assets, of which approximately 55% is low-cost hydroelectric power to meet in-house energy requirements and to sell to external customers.