Alcoa Corp. completes separation from Alcoa Inc.

Alcoa Corp., headquartered in New York, says it has completed the separation from its parent company, Alcoa Inc. (now named Arconic Inc.), and has begun operating as an independent, publicly traded company listed on the New York Stock Exchange under the symbol “AA.”

“We are launching Alcoa Corp. as a world leader in the aluminum industry with distinct competitive advantages across the value chain,” says 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.”

Alcoa’s portfolio is comprised of six businesses across the aluminum value chain—Bauxite, Alumina, Aluminum, Cast Products, Rolled Products and Energy. The company’s footprint includes 25 manufacturing facilities worldwide and approximately 16,000 employees. Its assets include:

• 45.3 million bone dry metric tons (bdmt) of bauxite mining production in 2015 and access to large bauxite mining deposits with mining rights that extend more than 20 years in most cases;
• nine alumina refineries on five continents;
• a newly optimized smelting portfolio;
• casthouses offering differentiated, value-added aluminum products alloyed and cast into specific shapes to meet customer demand;
• rolling mill operations in Warrick, Indiana, and Ras Al Khair, Saudi Arabia, to serve the North American aluminum can sheet market; and
• a portfolio of energy assets of which approximately 55 percent are low-cost hydroelectric power to meet in-house energy requirements at the lowest possible cost and to sell to external customers.

Alcoa projects global aluminum demand growth of 5 percent in 2016 and says it expects growth to double between 2010 and 2020.

The separation was completed Nov. 1, 2016, through a pro rata distribution by Alcoa Inc. of 80.1 percent of the outstanding shares of the newly formed Alcoa Corp. Arconic will retain 19.9 percent of Alcoa Corp. common stock. The distribution is intended to qualify as a tax-free transaction to Alcoa Inc. shareholders for U.S. federal income tax purposes, the company says.

Alcoa Inc. shareholders receive one share of Alcoa Corp. common stock for every three shares of Alcoa Inc. common stock held as of the record date of Oct. 20, 2016, and retain their shares of Alcoa Inc., which, because of the name change of Alcoa Inc. to Arconic Inc., are now Arconic Inc. shares.

To mark Alcoa Corp.’s launch as an independent company, the Alcoa Foundation, as part of what it describes as its refreshed focus on sustainable development, is announcing a $300,000 one-year commitment to World Wildlife Fund (WWF). The program will address the impacts of climate change around the world, including in countries where Alcoa Cor. has operating locations, such as southwestern Australia, Brazil, Iceland and Norway.

Over the coming year, WWF will work with its partners to collect much-needed data on climate change and its effect on people and biodiversity. Findings from this initiative will help WWF develop conservation strategies and educational materials.