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| Company type | Public |
|---|---|
| ISIN | US0138721065 |
| Industry | Metals |
| Founded | 1888; 137 years ago (1888) |
| Founder | Charles Martin Hall |
| Headquarters | Pittsburgh, Pennsylvania, U.S. |
Area served | Worldwide |
Key people |
|
| Products | |
| Revenue |  US$10.55 billion (2023) |
| −US$584 million (2023) | |
| −US$651 million (2023) | |
| Total assets | US$14.16 billion (2023) |
| Total equity | US$4.251 billion (2023) |
Number of employees | 13,600 (2023) |
| Website | alcoa |
| Footnotes / references Financials as of December 31, 2023[update]. References:[1] | |
Alcoa Corporation (anacronym for "Aluminum Company of America") is an American industrial corporation. It is the world's eighth-largest producer ofaluminum.[2][3] Alcoa conducts operations in 10 countries. Alcoa is a major producer of primary aluminum, fabricated aluminum, and alumina combined, through its active and growing participation in all major aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling.[4]
Alcoa emerged in 1888 as the brainchild ofCharles Martin Hall, with the funding ofAlfred E. Hunt andArthur Vining Davis. Alcoa was the first mass producer of aluminum. Before Alcoa's formation, aluminum was difficult to refine and, as a result, was more expensive than silver or gold.[5] In 1886, Hall discovered theHall–Héroult process, the first inexpensive technique for refining aluminum, drastically reducing the price of aluminum while increasing its availability. Hall approached Hunt and Davis to form a company to bring his process to market; the three founded Alcoa as thePittsburgh Reduction Company, which expanded quickly. Hunt died in 1898 after fighting in theSpanish–American War. The company changed its name to the Aluminum Company of America in 1907. Alcoa increased production by 40% during World War I and was an essential supplier of aluminum in World War II.
In the 2000s, Alcoa purchased numerous competitors, includingReynolds Group Holdings (makers of Reynolds Wrap). On November 1, 2016, Alcoa Inc. split into two entities: a new one called Alcoa Corporation, which is engaged in the mining and manufacture of raw aluminum, and the renaming of Alcoa Inc. toArconic Inc., which processes aluminum and other metals.[6] Alcoa has been criticized for its lax environmental record, but it no longer ranks highly as one of the worst polluters in the United States.
In 1886,Charles Martin Hall, a graduate ofOberlin College, discovered the process ofsmelting aluminum, almost simultaneously withPaul Héroult in France.[7] He realized that by passing an electric current through a bath ofcryolite andaluminum oxide, the then semi-rare metal aluminum remained as a byproduct.[8] This discovery, now called theHall–Héroult process, along with theBayer process, are the dominant processes for production of aluminum frombauxite ore.[citation needed]
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Fewer than ten sites in the United States and Europe produced aluminum at the time.[citation needed] In 1887, Hall agreed to try his process at theElectric Smelting and Aluminum Company plant inLockport, New York.[citation needed] Still, it was not used, and Hall left after one year, teaming up withAlfred E. Hunt to form a new company.[9]
After graduating fromAmherst College in 1888,Arthur Vining Davis joined the new venture because Arthur's father knew Alfred Hunt. At the time, aluminum sold at almost $5 per pound, making it too expensive to be used commercially. They were determined to lower the cost of production using Charles Hall's ideas; Hall, Davis, and others worked 12-hour days together for months on the experiments. Their first commercial aluminum pour was on Thanksgiving Day in 1888.[10]
ThePittsburgh Reduction Company began with an experimental smelting plant on Smallman Street inPittsburgh, Pennsylvania with Hunt as president and Hall as vice president. In 1891, the company began production inNew Kensington, Pennsylvania. Davis was named general manager and appointed to the board of directors in 1892. In 1895, a third site opened atNiagara Falls.[citation needed]
Hunt left the company in 1898 to fight in theSpanish–American War. While in Puerto Rico, he contractedMalaria. Less than a year after his return to the states, he died from complications of the disease at age 44.[11]
By about 1903, after a settlement with Hall's former employer, and while its patents were in force, the company was the only legal supplier ofaluminum in the United States.[12][13]
By 1902, New Kensington consisted of 173,000 sq. feet on 15 acres with 276 employees. The company operated hydropower and reduction plants in Niagara Falls, NY (1895),Shawinigan Falls, Quebec (Northern Aluminum Company), mining operations inBauxite, AR (1901), and reduction facilities inEast St. Louis, IL (1902). "The Aluminum Company of America" became the firm's new name on January 1, 1907.[14] Davis was named company president in 1910 when theacronym "Alcoa" was coined. Hall remained a vice president until he died in 1914. It was given as a name to two of the locales where major corporate facilities were located (although one of these has since been changed), and in 1999, was adopted as the official corporate name.[citation needed]
From 1902 until 1915, additional plants inMassena, New York (1903),Alcoa, Tennessee (1911),Edgewater, New Jersey (1915),Badin, North Carolina (1915) came online while New Kensington had 31 buildings in the complex housing six departments (tubes, sheets, rods, bar and wire, extrusion, jobbing, foil) and two subsidiaries (Aluminum Cooking Utensil Company and Aluminum Seal Company). In 1907, it created the "company town" ofPine Grove, New York, for workers outside Massena. In Badin, Alcoa,Maryville and other locations, the company funded the construction of schools, parks, playgrounds, and medical facilities.[14]
Historian George David Smith notes that "war was good to Alcoa."[15] By the end ofWorld War I Alcoa's New Kensington facility accounted for 3,292 workers—a fifth of the local population—and covered over 1 million square feet of manufacturing space on 75 acres.[14] The war enabled Alcoa to increase production by 40% and to export some ninety million pounds to the Western Allies.[15]
After WWI, Alcoa obtained the rights toAlfred Wilm'sduralumin patent, which led to additional research into other aluminum alloys. By 1923, Alcoa'sNew Kensington, Pennsylvania plant was using horizontalextrusion presses, with preheated billets, foraerospace and construction applications.[16] One of the first industrial uses was for the Navy'sShenandoah, followed ten years later withairplane applications.[17] TheNorthern Aluminum Company in Quebec was renamed theAluminum Company of Canada (ALCAN) in 1925. They were responsible for the rapid development of Arvida, Quebec, a remote area 250 km north ofQuebec City. Infrastructure was necessary to support the workforce required by the aluminum plant, so the company funded the construction of schools, parks, playgrounds, and medical facilities.[14]
Davis was named chairman of Alcoa's board of directors in 1928 and remained in that role for thirty years until his retirement.[citation needed]
In 1938, theJustice Department charged Alcoa with illegalmonopolization and demanded that the company be dissolved. The case ofUnited States v. Alcoa was settled six years later.
Aluminum products were of crucial use during World War II.[15] A German U-Boat sank theSS Alcoa Puritan in 1942, as it carried a load of bauxite ore.[18]
In 1998, Alcoa acquiredAlumax in a cash and share deal for $2.8 billion. Alcoa paid $50 a share in cash for half of the shares and 0.6975 Alcoa share for each of the remaining Alumax shares. Alcoa also assumed $1 billion in debt.[19] Alumax's assets included the Eastalco aluminum smelter inAdamstown, Maryland, the Intalco aluminum smelter inFerndale, Washington, and theKawneer brand of building construction products.[citation needed]
In 2000, Alcoa acquiredReynolds Metals Co. in an all-share deal for $4.5 billion. To clear anti-competition regulatory hurdles, Alcoa was required to sell Reynolds's 25% interest in a Washington smelter and all of Reynolds's alumina refineries. Reynolds owned a 56% interest in the Worsley alumina refinery in Australia, a 50% interest in a refinery in Germany, and a 100% interest in a Texas refinery. Alcoa also planned to sell Reynolds's construction and distribution business and the company's $400 million transportation business.[20] Alcoa sold its packaging and consumer business, formerly called Reynolds Metals, to theRank Group for $2.7 billion in 2008.[21]
In 2000, Alcoa also purchased Cordant Technologies Inc. for $57 a share in cash, or $2.3 billion, and assumed $685 million of Cordant's debt for a total transaction value of $2.9 billion. Cordant's divisions included Huck Fasteners, Jacobson Mfg. Co., Continental/Midland Group, its 85% interest inHowmet International Inc., andThiokol Corporation.[22][23][24] In 2001, Alcoa sold Thiokol for $2.9 billion toAlliant Techsystems (ATK).
Alcoa purchased an 8% stake ofAluminum Corporation of China (Chalco) in 2001.[25] It tried to form astrategic alliance with China's largest aluminum producer, at itsPingguo facility; however, it was unsuccessful. Alcoa sold their stake in Chalco on September 12, 2007, for around $2 billion.[26][27]
In 2004, Alcoa'sspecialty chemicals business was sold to two private equity firms led byRhône Group for an enterprise value of $342 million, which included the assumption of debt and other unfunded obligations.[28]Rhône Group then changed the name toAlmatis, Inc.
In 2006, Alcoa relocated its top executives from Pittsburgh toNew York City while its operational headquarters was still at its Corporate Center in Pittsburgh. Alcoa employed approximately 2,000 people at its Corporate Center in Pittsburgh and 60 at its New York office.[29] Alcoa moved its headquarters back to Pittsburgh effective September 1, 2017, as part of a general consolidation of administrative facilities around the world.[30][31] In October 2018, Alcoa announced plans to move from Pittsburgh'sNorth Shore to a downtown Pittsburgh location.[32]
In May 2007, Alcoa Inc. made a US$27 billionhostile takeover bid forAlcan in an attempt to form the world's largest aluminum producer.[33] The bid was withdrawn when Alcan announced afriendly takeover byRio Tinto in July 2007.[34]
On May 8, 2008, Klaus Kleinfeld was appointed CEO of Alcoa, succeedingAlain Belda.[35] On April 23, 2010, Alcoa's board of directors selected Kleinfeld to the office of chairman, following Belda's planned retirement.[36]
On July 16, 2012, Alcoa announced that it would take over full ownership and operation of Evermore Recycling and make it part of Alcoa's Global Packaging group. Evermore Recycling is a leader in used beverage can recycling, purchasing more recycled cans than any other group worldwide.[37]
In June 2013, Alcoa announced it would permanently close its Fusina primary aluminum smelter inVenice, Italy, where production had been curtailed since June 2010.[38]
On January 9, 2014, Alcoa settled with the U.S.Securities and Exchange Commission and theU.S. Department of Justice over charges of bribing Bahraini officials. Under the settlement terms, they will pay the SEC $175 million to settle the charges. To resolve the criminal claims with the DoJ, Alcoa World Alumina (AWA, a company within Alcoa World Alumina and Chemicals) is pleading guilty to one count of violating the anti-bribery provisions of theForeign Corrupt Practices Act (FCPA). AWA will pay the DoJ $223 million in five equal installments over the next four years, bringing the company's total bill for the scandal to $384 million.[39]
In June 2016, Alcoa Inc. announced plans to split itself into two companies: Alcoa Inc would be renamed asArconic and would take over the business of designing and building processed metal parts, primarily for the automotive and aerospace industries; a new company, Alcoa Corporation, would be set up and spun out of the remainder of Alcoa Inc. and retain the Alcoa name. Alcoa Corp. would continue the mining, smelting, and refining of raw aluminum.[40] The split was completed on November 1, 2016.[6]
In February 1999, Alcoa cleaned soils and sediment contaminated withpolychlorinated biphenyls (PCB) and lead at the York Oil federal Superfund site inMoira, New York, in accordance with the Environmental Protection Agency. The site, a formerwaste oil recycling storage facility, accepted waste oil from several companies, including Alcoa. The facility was improperly managed and operated, and as a result, soils on the York Oil Property and nearby wetlands sediments and groundwater were contaminated. TheUnited States Environmental Protection Agency (EPA) issued a Superfund Unilateral Order on December 31, 1998, requiring Alcoa to excavate, treat and dispose of the contaminated wetlands sediments.[41]
In April 2003, Alcoa Inc. agreed to spend an estimated $330 million to install a newcoal-fired power plant with state-of-the-art pollution controls to eliminate the vast majority ofsulfur dioxide andnitrogen dioxide emissions from the power plant at Alcoa's aluminum production facility inRockdale, Texas. The settlement was the ninth case theBush administration pursued to bring the coal-fired power plant industry into full compliance with theClean Air Act. Alcoa was unlawfully operating at the Rockdale facility since it overhauled the Rockdale power plant without installing necessary pollution controls and without first obtaining proper permits required by "New Source Review" program of the Clean Air Act.[42]
In 2005, Alcoa was again included in theDow Jones Sustainability Indices and was named as one of the top three mostsustainable corporations in the world byCorporate Knights and Innovest Strategic Value Advisors at theWorld Economic Forum meeting.[43]
In 2008, thePolitical Economy Research Institute ranked Alcoa 15th among corporations emitting airborne pollutants in the United States. The ranking is based on the quantity (13 million pounds in 2005) and toxicity of the emissions.[44] More recently Alcoa ranked first in the United States even though they had reduced their emissions to less than 5 million pounds in 2014.[45] Alcoa's most recently published ranking has dropped to 72nd based on 2020 data.[46]
Alcoa formed the Alcoa Minerals ofJamaica subsidiary on the island in 1959, shipping their first load of bauxite in 1963 fromRocky Point. Later in 1972, Alcoa established a 500,000tonne per year refinery that processes bauxite into alumina. They have continued to upgrade the plant through the years, and it is now capable of 1,425,000 tonnes per year.[citation needed] In 1988, the Jamaican government gained a 50% share in the subsidiary and renamed the operation to Jamalco, Alcoa being the managing partner. Expansion of the operation in 2007 resulted in Alcoa owning 55% of the operation. Alcoa continues to mine bauxite in the Jamaican parishes of Clarendon and Manchester, while competitors' operations occur in nearby parishes.[citation needed]
In the 1970s, Alcoa negotiated with theDominican Republic government concerning its bauxite mining operations. The U.S. Department of State expressed concerns that the Dominican Republic might follow Jamaica's lead in imposing higher taxes on Alcoa's operations. This period was marked by intense discussions and negotiations regarding the taxation and revenue from bauxite mining, highlighting the complexities of international business operations and the impact of global commodity markets on local economies.[47]
Alcoa Road, also known as El Aceitillar, is a significant part of Alcoa's legacy in theDominican Republic. Originally constructed for a bauxite mine, it now leads toSierra de Bahoruco National Park. This area offers an opportunity to observeendemic species and serves as a reminder of the environmental dimensions of industrial operations. Alcoa Road's transition from an access route for mining to a gateway for environmental observation underscores the evolving relationship between industry and conservation.[48]
Alcoa's affiliate inGhana, theVolta Aluminum Company, was completely closed between May 2003 and early 2006 due to problems with its electricity supply.[49][50]
Alcoa is a major owner of theCompagnie des Bauxites de Guinée throughHalco Mining, together withRio Tinto Alcan and the Guinean government.[51]Guinea is the second global producer ofbauxite and it is said to have half of the world's reserves.[citation needed]
In 2005, Alcoa began construction in Iceland onAlcoa Fjarðaál, a state-of-the-art aluminum smelter and the company's firstgreenfield smelter in more than 20 years,[52] albeit under heavy criticism by local and international NGOs related to a controversial dam project exclusively dedicated to supplying electricity to this smelter.The Fjarðaál smelter in eastern Iceland was completed in June 2007 and brought into full operation the following April. The plant processes 940 tons of aluminum a day, with a capacity of 346,000 metric tons a year,[53] making it Alcoa's second largest capacity smelter. For power, the plant relies on theKárahnjúkar Hydropower Plant, constructed and operated by the state-ownedLandsvirkjun specifically for the smelting operation. That project was subject to controversy due to its impact on the environment.[citation needed]
In 2006, Alcoa and the government of Iceland signed an agreement on instigating a thorough feasibility study for a new 250,000 tpy (Tons Per Year) smelter in Bakki byHúsavík in Northern Iceland. In October 2011, the proposed project was dropped because "the power availability and proposed pricing would not support an aluminum smelter".[4][independent source needed]
Alcoa announced plans to close the office in Reykjavik.[citation needed]
In 2005 Alcoa acquired two major production facilities in Russia, atSamara andBelaya Kalitva.[54]
On November 21, 2006, Alcoa announced that it planned to close theWaunarlwydd works inSwansea, with the loss of 298 jobs. Production ceased at the Swansea plant on January 27, 2007. A small site closure team worked until December 31, 2008. Alcoa still owns the site, but it is now managed locally and renamed Westfield Industrial Park.[citation needed] Several of the large buildings are leased out to local businesses.[55][56]
Alcoa operates bauxite mines, alumina refineries, and aluminum smelters throughAlcoa World Alumina and Chemicals (AWAC), a joint venture betweenAlumina Limited and Alcoa. Alcoa operates two bauxite mines in Western Australia—the Huntly and Willowdale mines. Alcoa World Alumina and Chemicals owns and operates three alumina refineries inWestern Australia: Kwinana,Pinjarra, andWagerup. The Wagerup expansion plans were put on hold due to the2008 Global Financial Crisis. In January 2024, Alcoa announced it would cease alumina production at its Kwinana refinery that year.[57] Two aluminum smelters are also operated in the state ofVictoria atPortland andPoint Henry; the Point Henry smelter was scheduled to be closed in August 2014.[58] Alcoa Australia Rolled Products, a 100% Alcoa Inc. venture, operates two rolling mills. The Point Henry Rolling Mill in Victoria and the Yennora Rolling Mill in N.S.W. have a combined rolling capacity of approx. 200,000 tonnes. Alcoa uses 12,600 GWh, or 15% of Victoria's electricity annually.[59]
Alcoa's Western Australian Wagerup plant has a troubled history in the context of claims that pollution from the plant has harmed the health of members of the adjacent local community.[60][61][62]
Alcoa announced it would acquire Alumina for $2.2 billion in an all-stock deal in February 2024. As part of the deal Alcoa would gain full ownership of AWAC.[63] The acquisition was completed in August.[64]
On January 3, 2003, Alcoa opened its new operations headquarters on theNorth Shore of Pittsburgh. This move came about after it donated its 50-year-oldskyscraper headquarters inDowntown Pittsburgh to the Regional Development Authority.[citation needed]
Alcoa created a plant just outsideMaryville inBlount County, Tennessee. To support the factory, Alcoa built a small city and named it as such. TheAlcoa Tenn Federal Credit Union was the first employee-created credit union in the state. The plant is no longer an Alcoa business.[65]
Alcoa's Massena West plant is the longest-operating smelter in the United States, continuously operating since 1902. The Reynolds Aluminum Plant became Massena East when the companies merged in 2000.[citation needed]
Alcoa had a smelting plant inBadin, North Carolina from 1917 to 2007 and continued ahydroelectric power operation there until February 1, 2017, when the Yadkin Hydroelectric Project was sold to Cube Hydro.[66]
Alcoa also operates an aluminum smelting plant of similar size to the one in Tennessee inWarrick County, Indiana, just east ofNewburgh.Vectren Energy operates a coal power plant on the site to provide electricity. In 2021, Alcoa retained the aluminum smelter and generating station while selling the rest of the facility to Kaiser Aluminum. This sale included the cast house, ingot facilities, hot mill, cold mills, and finishing mills.[citation needed]
Alcoa maintains several Research and Development Centers in the United States. The largest one, Alcoa Technical Center, is located East of its Pittsburgh Headquarters atAlcoa Center, Pennsylvania. The "Tech Center" is as large as some college campuses, has its ownzip code, and maintains an extensive intellectual and physical resource for innovation.[citation needed] Alcoa's extensive safety program continuously improves safety at the Tech Center. AfterPaul O'Neill became Alcoa's CEO in 1987, Alcoa became one of the safest companies in the world, despite the aluminum industry's inherent risks.[67][better source needed]
Alcoa plans to close offices in Richmond, Virginia; Nashville, Tennessee; and Chicago.[31]
TheAlcoa Steamship Company was a subsidiary of ALCOA since the company was formed in 1917.[68]
After theRussian invasion of Ukraine in 2022, Alcoa spent over $1 million to lobby the U.S. government for sanctions against Russian aluminum companies.[74]
From 1955 to 1957, Alcoa sponsoredThe Alcoa Hour, ananthology television series onNBC. The series ran for 48 episodes across two seasons and would feature an advertisement for Alcoa products before the credits of each program. The series featured some of the early work of directorSidney Lumet, the five-timeOscar nominee known for the 1957 version of12 Angry Men.
Between 1957 and 1960, the Alcoa-sponsoredAlcoa Theatre, an NBC anthology television series that went on to win threeEmmys. From 1961 to 1963, Alcoa sponsored a third anthology television series onABC.Alcoa Premiere was hosted by Fred Astaire and received 14 Emmy nominations during its two-year run.
Alcoa is portrayed as the main sponsor of the 1953CBS programSee It Now inGeorge Clooney'sAcademy Award–nominated 2005 filmGood Night, and Good Luck.[75]
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