Alcoa splits into two independent companies
September 29, 2015 by Ross Marowits The Canadian Press
Sept. 28, 2015 – Alcoa will split into two independent companies — one focused on aluminum production and the other on engineered products for the automotive and aerospace industries.
The Alcoa name will remain with the metals company that does mining, refining and aluminum production with 17,000 employees at 64 plants worldwide, including three in Quebec.
The other company, yet to be named, will have 157 locations and 43,000 employees that will provide high-performance products. About 40 per cent of its revenues have come from the aerospace market.
Alcoa expects the split to be completed by the second half of 2016. Industry observers said they don’t expect much impact on the Canadian operations, which benefit from a low currency and low electricity prices.
Klaus Kleinfeld, who will be chief executive of the engineer-products company and chairman of both companies, said the split recognizes that two strong “value engines” have been created over the past few years.
“We are launching two strong companies. Both are driving value. Both will be distinct, global leaders,” Kleinfeld told analysts.