Alcoa has announced a realignment of its downstream segment as the company’s value-add portfolio expands.
Alcoa’s downstream portfolio will become two segments, one with a core focus on aerospace, and the other centered on the construction and commercial vehicle wheel markets. The realignment supports Alcoa’s transformation strategy to build its value-add portfolio for greater profitability.
With Alcoa’s successful acquisition of RTI International Metals, Inc., the recent acquisitions of Firth Rixson and TITAL, and other innovation-led organic growth investments, the company says it continues to deepen its reach into the high-growth aerospace market. The Engineered Products and Solutions (EPS) segment, led by Group President Olivier Jarrault, has been streamlined to enable a core focus on Alcoa’s position as a premier aerospace partner. The EPS group will comprise business units that primarily cater to the aerospace market, Alcoa says.
Alcoa also has formed a new business segment, Transportation and Construction Solutions, incorporating the business units, Alcoa Wheel & Transportation Products, and Alcoa Building & Construction Systems, both formerly part of EPS.
The new group structure will drive successful expansion into emerging regional markets, where both these business units have significant opportunity, in addition to capturing continued growth in existing markets, the company says. To build on the exciting growth prospects for Alcoa in emerging markets, Jose Drummond, Latin American Regional President, has been appointed to lead the group as President, Alcoa Transportation and Construction Solutions. Drummond will also maintain his Regional President role.
“These changes provide important leadership and organizational advances in support of our transformation strategy,” says Alcoa Chairman and CEO Klaus Kleinfeld. “As Alcoa builds out its downstream portfolio, our growth prospects in the aerospace industry and across emerging markets continue to widen. This realignment optimizes our organizational structure and expands our leadership capabilities to more rapidly capture profitable downstream growth.”
