Alcoa Corporation announced that it is ‘consolidating’ a number of business units to reduce complexity and lower costs.
The company’s CEO Roy Harvey said the aluminium smelting, cast products and rolled products businesses, along with the majority of the energy segment assets, will be combined into a new Alcoa Aluminium business, adding to the existing Alcoa Bauxite and Alcoa Alumina units.
“Our strategic goals include reducing complexity, driving returns to create stockholder value and strengthening the balance sheet,” Mr Harvey added.
“Streamlining our number of business units is aligned with those goals, and will increase our operational agility, lower costs, and promote more efficient internal coordination. We will continue to review our company structure and processes to ensure that Alcoa remains resilient through all market cycles.”
The newly created Alcoa Aluminium business unit will be led by Mr Tim Reyes, who has been in charge of the Company’s Cast Products segment since 2015.
“Tim has a strong track record of commercial, operational and strategic success that makes him ideally suited to head the new Aluminium BU,” Mr Harvey said.
“At Cast Products, he has enhanced its financial performance, improved safety, productivity, operational costs, and employee engagement. He also led the innovation of differentiated products for end market customers, including a new line of sustainable aluminium products. That customer focus, combined with his operational and commercial background, will be invaluable in his new role.”
The changes will also see Mr Martin Briere, President of Aluminium since 2014, leave the company after 10 years in service.
“A strong operational professional with deep technical expertise in smelting, Martin helped to restructure our smelting portfolio during a critical period for Alcoa’s aluminium business,” Mr Harvey continued.
“With responsibility for the smelting centre of excellence, he also ensured that best practices were implemented across our smelters. He helped us to achieve our global aluminium cost curve goals, we thank him for his many contributions and wish him well in his new endeavours.”