Alcoa restructures global operations for increased efficiency

Related tags Strategic management Aluminium Management Alcoa

Alcoa has created a new aluminium and alumina division and a new
global extruded products business in a move to better align itself
with global packaging markets.

Alcoa also intends to create an integrated North American and European business serving the mill products markets. The rigid packaging business, with major operations in the United States and Australia, will be organised into a new global business group, and combined with Alcoa's Asia operations, and the global industrial foil business.

Alcoa believes that these four new businesses, along with two existing global businesses serving the packaging and transportation markets, will give it a more simplified structure better suited to serve its customers. The leaders of these six businesses will report to Alcoa chairman Alain Belda.

"Globalisation continues to transform the way our business operates,"​ said Belda.

"Today's changes will help us be more agile in swift-moving markets and allow us to better leverage our global manufacturing capability. The new management team and structure give us an opportunity to further reduce costs, improve productivity, and grow our business."

Alcoa has been seeking to expand aggressively in international markets, for the past few years, while keeping costs down. Recent raw material price increases has made this tricky, but there have been opportunities.

In July, this year for example, the company completed construction of a new plant in Hangzhou, China, for its Closure Systems International (CSI) business, feeding growing demand for closures in both the domestic and Japanese markets.

The 8,125 square metre plant, situated a few hundred kilometres south of Shanghai produces plastic closures primarily for export to beverage producers in Japan as well as smaller beverage producers in the domestic market. The site was chosen for its close proximity to both Japan and industrial hubs on the eastern board.

Related topics Processing & Packaging

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