INDUSTRY news
Aluminum Giant Alcoa to Split Into Two Companies
Alcoa Inc., Pittsburgh, Pa., an- nounced it would split into two publicly traded companies, splitting the fi rm’s casting and fabrication units from materials operations. T e raw materials business—including bauxite mining, alumina refi ning and alumi- num production—will retain the Al- coa name. T e second company will be the company’s “value-added business,” including its metalcasting operations. “We’ve worked very hard on chang-
ing the setup of both of these busi- nesses,” said Klaus Kleinfeld, CEO, Alcoa. “All of this has led to a structure of both fi rms to really be competitive and be able to run on their own.” Mr. Kleinfeld will become CEO of the value-add company and act as chairman for both companies. Ac- cording to the Wall Street Journal, the value-added company would have had $14.5 billion in revenue in the year ended June 30, while the raw metals
division would have had revenue of $13.2 billion. Alcoa’s aerospace and automo-
tive divisions have been driving profit recently as demand for alu- minum components has increased. Alcoa has benefited from Ford Motor Co. and other major OEMs buying aluminum parts as light- weight alternatives to comply with new fuel-efficiency regulations. The deal, which is expected to be tax-free for shareholders, is expected to close in the second half of 2016. Alcoa shareholders will own all outstanding shares of both companies. ■
Sakthi Group Breaks Ground on $31.8 Million Expansion
On October 19, Sakthi Automo-
tive Group USA Inc., a division of the India-based Sakthi Group, broke ground on a $31 million alumi- num casting facility in Detroit. T e 70-acre manufacturing campus is expected to be completed in 2017 and create 350 new jobs. “It’s a special day,” said Detroit
Mayor Mike Duggan. “Everything about Detroit’s recovery starts with a job.” T e expansion, including the aluminum casting operation, will be used for manufacturing, machin- ing, advanced worker training and employee wellness programs. T e project has been awarded a $3.5 million performance-based grant from the Michigan Economic De- velopment Corporation (MEDC). MEDC and the city of Detroit also will recommend the approval of a Michigan Strategic Fund-designated Renaissance Zone for the expansion at a later date. T e city has off ered support to the project in the form of a proposed property tax abatement. Sakthi is a supplier of safety criti-
cal components like steering knuck- les, control arms, brake drums, brake discs and brake calipers. ■
8 | METAL CASTING DESIGN & PURCHASING | Nov/Dec 2015
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