Alcoa Looks Beyond Aluminum
Longtime aluminum producer Alcoa is making an audacious move forward to increase revenue and expand business. Currently headquartered in New York, Alcoa is making a global shift in production. Manufacturing of raw materials is moving to mainly Asian markets. Due to higher electricity costs in the West, they are reducing more than 500,000 tons of annual smelting capacity, which makes up nearly 14% of total annual capacity. Specifically, the production of raw aluminum makes up about 30% of electricity costs.
According to the Wall Street Journal, Alcoa has its eyes set on increasing its production presences in Saudi Arabia and Iceland. However, with increased business there must be cut backs. Alcoa announced that two of their raw material plants will be shut down in Brazil. The second change to the company involves a shift in focus. The auto and aerospace industries are catching more attention, and more revenue—thus, Alcoa has invested into a $5.1 billion contract with RTI International Metals Inc., a supplier of metal components for the aerospace industry. This joint venture was a passage point for Alcoa to increase exposure within the aerospace field. Furthermore, Alcoa purchased Firth Rixson Ltd., a manufacturer of jet engine parts, and Tital, a German producer of aerodynamic metal pieces.
Despite these changes, Alcoa remains a leading provider of aluminum raw material, which makes up more than 80% of sales. Founded in 1888 in Pittsburgh, Pennsylvania, the Aluminum Company of America (Alcoa) has become the third-largest producer of aluminum. Beside raw aluminum, Alcoa also manufacturers castings, fasteners, and engine parts for automobiles, aircrafts, commercial transportation, and defense structures. With more than 60,000 employees and over a USD$23 billion annual revenue in 2013, Alcoa has expanded to over 31 countries with plans to expand even further. Via our proprietary website Just NSN Parts, ASAP Semiconductor is a leading supplier of Alcoa products. Prospective customers can browse our inclusive inventory of hard-to-find obsolete and current Alcoa parts at www.justnsnparts.com. If you are interested in a part, please feel free to contact our knowledgeable sales staff at firstname.lastname@example.org or 1-714-705-4780 for a quote.
Posted on April 9, 2015