In a move that has long been mooted but never looked sustainable until recently, Alcoa finally feels the time is right to divide up the 127-year-old firm.
The company’s ceo, Klaus Kleinfeld, says the move is the “culmination of (Alcoa’s) successful transformation” and wouldn’t have been possible a year-ago.
“There has been no discussion of the company in the past couple of years that didn’t talk about the two engines under the hood of Alcoa,” he told a conference call earlier.
“Both the upstream and the value-add businesses are the size, shape, scale and strength to stand on their own. We couldn’t have done this a year ago,” he added.
Kleinfeld has for some time referenced "building two gigantic engines" from the Alcoa business, which was bashed during the economic downturn by the collapse of aluminium prices as well as demand from key consuming industries such as automotive, aerospace and...