Alcoa Realigns Downstream Portfolio to Drive Greater Profitability as Transformation Continues
July 23 2015 - 9:02AM
Business Wire
New Structure Strengthens Company’s Ability to
Capture Robust Aerospace Demand, and Growth in Emerging Markets
Lightweight and high performance metals leader Alcoa (NYSE: AA)
today announced a realignment of its downstream segment as the
Company’s value-add portfolio expands. Alcoa’s downstream portfolio
will become two segments, one with a core focus on aerospace, and
the other centered on the construction and commercial wheels
markets. The realignment supports Alcoa’s transformation strategy
to build its value-add portfolio for greater profitability.
With Alcoa’s successful acquisition of RTI International Metals,
Inc. (NYSE: RTI) today, the recent acquisitions of Firth
Rixson and TITAL, and other innovation-led organic growth
investments, the Company continues to deepen its reach into the
high-growth aerospace market. The Engineered Products and Solutions
(EPS) segment, led by Group President Olivier Jarrault, has been
streamlined to enable a core focus on Alcoa’s position as a premier
aerospace partner. The EPS group will comprise business units that
primarily cater to the aerospace market:
- Alcoa Titanium & Engineered
Products, the designation for the newly acquired RTI business
- Alcoa Fastening Systems & Rings,
and Alcoa Forgings & Extrusions, into which the Firth Rixson
business has been integrated, and
- Alcoa Power & Propulsion, which now
includes the TITAL business
Alcoa has formed a new business segment, Transportation and
Construction Solutions, incorporating the business units, Alcoa
Wheel & Transportation Products, and Alcoa Building &
Construction Systems, both formerly part of EPS. The new Group
structure will drive successful expansion into emerging regional
markets, where both these business units have significant
opportunity, in addition to capturing continued growth in existing
markets. To build on the exciting growth prospects for Alcoa in
emerging markets, Jose Drummond, Latin American Regional President,
has been appointed to lead the group as President, Alcoa
Transportation and Construction Solutions. Drummond will also
maintain his Regional President role.
“These changes provide important leadership and organizational
advances in support of our transformation strategy,” said Alcoa
Chairman and Chief Executive Officer Klaus Kleinfeld. “As Alcoa
builds out its downstream portfolio, our growth prospects in the
aerospace industry and across emerging markets continue to widen.
This realignment optimizes our organizational structure and expands
our leadership capabilities to more rapidly capture profitable
downstream growth.”
External reporting for Alcoa’s new Transportation and
Construction Solutions segment will begin in third quarter
2015.
Biography – Olivier Jarrault
Biography – Jose Drummond
About Alcoa
A global leader in lightweight metals technology, engineering
and manufacturing, Alcoa innovates multi-material solutions that
advance our world. Our technologies enhance transportation, from
automotive and commercial transport to air and space travel, and
improve industrial and consumer electronics products. We enable
smart buildings, sustainable food and beverage packaging,
high-performance defense vehicles across air, land and sea, deeper
oil and gas drilling and more efficient power generation. We
pioneered the aluminum industry over 125 years ago, and today, our
more than 60,000 people in 30 countries deliver value-add products
made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For
more information, visit www.alcoa.com, follow @Alcoa on
Twitter at www.twitter.com/Alcoa and follow us on Facebook at
www.facebook.com/Alcoa.
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version on businesswire.com: http://www.businesswire.com/news/home/20150723005786/en/
AlcoaInvestor ContactNahla Azmy,
212-836-2674Nahla.Azmy@alcoa.comorMedia ContactMonica Orbe,
212-836-2632Monica.Orbe@alcoa.com
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