New York, New York – Arconic Inc. launched Nov. 1, 2016, as a standalone company in multi-materials innovation, precision engineering, and advanced manufacturing.
“Today we launch Arconic as a strong independent company,” said Arconic Chairman and CEO Klaus Kleinfeld. “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.”
Arconic combines the value-add segments of Alcoa Inc.: Global Rolled Products (excluding the rolling mill operations in Warrick, Indiana, and Saudi Arabia), Engineered Products and Solutions, and Transportation and Construction Solutions.
In 2015, the businesses that today comprise Arconic recorded revenues of approximately $12.5 billion. Of this, approximately 65% derived from markets including aerospace and automotive; the balance – 35% – was from markets such as specialty and industrial products, and building and construction.
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.
The Arconic Foundation, an independently endowed charitable organization, is making its inaugural grant to an organization that reflects the Arconic vision: Engineers Without Borders (EWB). The $300,000 grant will support the mission of EWB in major countries where Arconic operates: the United States, the United Kingdom, France, Germany, Mexico, and Brazil. EWB applies engineering and ingenuity to infrastructure projects worldwide to help build a resilient, sustainable future.
The separation of Alcoa Inc. into two standalone companies – Arconic Inc. and Alcoa Corp. – took effect through Arconic Inc. distributing 80.1% of the outstanding shares of the newly-formed Alcoa Corp. Alcoa Inc. shareholders received one share of Alcoa Corp. common stock for every three shares of Alcoa Inc. common stock held on Oct. 20, 2016. Alcoa Inc. shareholders also retain their shares of Alcoa Inc., which become Arconic Inc. shares. Additionally, Arconic’s 19.9% retained interest in Alcoa Corp. is available for monetization.
Source: Arconic Inc.