Alcoa’s board of directors unanimously approved a plan to separate into two independent, publicly-traded companies. The lightweight metals manufacturer produces wheels for the commercial vehicle market.
The split will create two new entities referred to as the Value-Add Company and Upstream Company and is expected to be completed in the second half of 2016. The Upstream Company will operate under the Alcoa name while the Value-Add Company will be named at a later date.
Value-Add Company consists of Alcoa’s Global Rolled Products, Engineered Products and Solutions and Transportation and Construction Solutions which includes the production of truck wheels for the Class 8 market. Upstream Company includes five of Alcoa’s global primary products - Bauxite, Alumina, Aluminum Casting and Energy.
Alcoa chairman and CEO, Klaus Kleinfeld, will head the Value-Add Company as chairman and CEO and serve as chairman of the Upstream Company during the initial phase to ensure a smooth transition. Each company will have an independent board of directors that will include members of the current Alcoa Board. Management teams for both companies will be named closer to the launch in 2016.