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Released July 05, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Executives with Alcoa Incorporated (NYSE:AA) (New York, New York) last week unveiled more financial details of the planned split into an upstream mining and metals firm and a downstream value-added products provider, but anybody wanting to know much money the two companies will pour into capital expenditures (capex) will just have to wait a while. Touting the filing of a 309-page registration statement as a milestone in the separation process, executives with the lightweight metals leader said they weren't quite ready to share future capex projections. They added that spending expectations for 2017 and 2018 would be made available later this year.
Industrial Info is tracking $5.76 billion in Alcoa-related projects across the globe. Nearly 95% of that amount is tied to projects still in the planning phases, where plenty of factors could impact their timing or ultimate outcome. Alcoa says it is the world's largest bauxite miner, with 45.3 million bone dry metric tons of production in 2015. It is also the world's largest alumina producer, with nine refineries on five continents. Alcoa plans $425 million in capital expenditures for 2016, according to its registration statement, compared with $391 million in 2015 and $444 million in 2014.
Click the image at right for a graph showing Alcoa's projects by country.
The great divide is expected to be finalized later this year. After the separation, Alcoa Corporation will be an upstream company, including bauxite, alumina and cast products, along with energy and rolling mill operations that serve the North American packaging market. Arconic, meanwhile, will provide precision engineering and manufacturing for growth markets, including aerospace structures, jet engines, automotive and commercial transportation. Arconic will keep a 19.9% share in Alcoa Corporation, with plans to sell off that share in as little as 18 months following the split.
For related information, see April 13, 2016, article - Alcoa Maintains Quarterly Capex Despite Drop in Profits, and January 14, 2016, article - Alcoa Banks on Global Aluminum Deficit as it Pushes to Split into Two Companies.
Chief Executive Officer Klaus Kleinfeld told investment analysts last week that following some "nightmarish discussions" regarding whether the heavily integrated Warrick operations in Newburgh, Indiana, should be divided between the two companies, company officials opted for the whole thing to fall under the aegis of the upstream Alcoa Corporation. Alcoa closed the 269,000-metric-ton-per-year Warrick smelter this year in response to alumina supply/demand dynamics, but the complex's rolling mill and power plant remain in operation. The Warrick rolling mill will concentrate on the North American packaging market, Kleinfeld said, which will help Arconic free up capacity at a rolling mill in Tennessee and convert it to serve the automotive market.
The upstream company also will have oversight of the Ma'aden joint-venture integrated aluminum facility in Saudi Arabia.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Industrial Info is tracking $5.76 billion in Alcoa-related projects across the globe. Nearly 95% of that amount is tied to projects still in the planning phases, where plenty of factors could impact their timing or ultimate outcome. Alcoa says it is the world's largest bauxite miner, with 45.3 million bone dry metric tons of production in 2015. It is also the world's largest alumina producer, with nine refineries on five continents. Alcoa plans $425 million in capital expenditures for 2016, according to its registration statement, compared with $391 million in 2015 and $444 million in 2014.
Click the image at right for a graph showing Alcoa's projects by country.The great divide is expected to be finalized later this year. After the separation, Alcoa Corporation will be an upstream company, including bauxite, alumina and cast products, along with energy and rolling mill operations that serve the North American packaging market. Arconic, meanwhile, will provide precision engineering and manufacturing for growth markets, including aerospace structures, jet engines, automotive and commercial transportation. Arconic will keep a 19.9% share in Alcoa Corporation, with plans to sell off that share in as little as 18 months following the split.
For related information, see April 13, 2016, article - Alcoa Maintains Quarterly Capex Despite Drop in Profits, and January 14, 2016, article - Alcoa Banks on Global Aluminum Deficit as it Pushes to Split into Two Companies.
Chief Executive Officer Klaus Kleinfeld told investment analysts last week that following some "nightmarish discussions" regarding whether the heavily integrated Warrick operations in Newburgh, Indiana, should be divided between the two companies, company officials opted for the whole thing to fall under the aegis of the upstream Alcoa Corporation. Alcoa closed the 269,000-metric-ton-per-year Warrick smelter this year in response to alumina supply/demand dynamics, but the complex's rolling mill and power plant remain in operation. The Warrick rolling mill will concentrate on the North American packaging market, Kleinfeld said, which will help Arconic free up capacity at a rolling mill in Tennessee and convert it to serve the automotive market.
The upstream company also will have oversight of the Ma'aden joint-venture integrated aluminum facility in Saudi Arabia.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
