New Structure Strengthens Company’s Ability to Capture Robust Aerospace Demand, and Growth in Emerging Markets
NEW YORK--(BUSINESS WIRE)--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
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.