Arconic Inc., which specializes in lightweight metals engineering and manufacturing, recently announced plans to separate the company’s portfolio into Engineered Products & Forgings and Global Rolled Products, with a spin-off of one of the businesses. In addition, it will also explore the potential sale of businesses that do not best fit into engineered products & forgings or global rolled products.
The Global Rolled Products segment produces a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing, and industrial markets. The Engineered Products and Solutions (EP&S) represents Arconic’s downstream operations and produces products that are used mostly in the aerospace (commercial and defense), commercial transportation, and power generation end markets.
The New York City-based company’s decision to separate its portfolio comes after rejecting a $10 billion offer for the entire company and abruptly replacing its Chief Executive. John Plant, the newly appointed CEO, stated during the company’s 4Q18 conference call that he expects the spin-off would be completed within the next 9 to 15 months.
Arconic has also released investment plans to expand its hot mill capability and add downstream equipment capabilities to manufacture industrial and automotive aluminum products in its Tennessee Operations facility near Knoxville, Tennessee.
“This investment will add capacity to meet the growing demand for industrial products and automotive aluminum sheet,” said Tim Myers, President of Arconic’s Global Rolled Products business. “With this expansion, we are further diversifying the portfolio of one of our largest North American facilities.” The industrial market consists of products made with common alloy aluminum sheet, which is used in applications for commercial transportation, appliances, machinery, and construction.
Photo credit/caption: Bloomberg News / A worker controls a crane to move an aluminum coil at the Arconic Inc. manufacturing facility in Alcoa, Tennessee.
