“After 125 years, Alcoa looks beyond aluminum” – ETAuto.com, 29 June 2014

Alcoa was established in the US in 1888, and since then has become the third largest producer of aluminum in the world. The company has become a primary manufacturer for aerospace and automotive parts, recently striking a deal with jet engine parts manufacturer Firth Rixson to create parts that use nickel, titanium, and aluminum-lithium alloys, rather than primary aluminum. Alcoa’s diversification is the company’s attempt at dodging the current primary aluminum market, which is struggling with weak demand and overcapacity.

via Wall Street Journal

via Wall Street Journal

The company is slowly rebranding itself as a manufacturer of various lightweight metals. This past May, Alcoa opened a $100 million facility in Indiana that will manufacture nickel-based alloy engine parts. Alcoa is slated to invest $25 million in a Virginia-based facility that will also mostly generate nickel-based alloy jet engine blades. Alcoa’s expansion has helped their stock grow over 80 percent since last year.

Aluminum will never leave Alcoa, and its use is only becoming more important in the US. Obama’s 2010 mandate to double new-car average fuel economies by 2025 has forced large US car manufacturers, like GM and Ford, to opt for aluminum rather than steel. In the past, aluminum has been used in manufacturing wheels, engines, and hoods of cars, but now the US car industry is moving to all-aluminum bodied cars.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

July 2, 2014

Phinix LLC

Copyright 2013. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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5 thoughts on ““After 125 years, Alcoa looks beyond aluminum” – ETAuto.com, 29 June 2014

    • Gifford,

      Good to hear from you after such a long time.

      Reasons for move back to US are :

      1. Lower energy cost and higher abundance due to availability of natural gas – thanks to “hydraulic fracturing” and horizontal mining both funded by US Govt. basic energy research some 40 years ago

      2. High tech manufacturing needing more skilled work force

      3. Proximity to biggest consumer market

      4. IP protection

      Stay in touch !

      Subodh

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