Alcoa 2003 Annual Report Download - page 18

Business Development
Ownership in South America
Alcoa acquired the Camargo Correa
Group’s 40.9% interest in Alcoa’s South
American operations, comprising busi-
nesses in six countries. The acquisition
enables Alcoa to build on the South
American operations’ historically strong
financial performance and better integrate
them with global businesses.
Growth in China
Alcoa is pursuing further growth in China,
which is expected to account for the
largest increase in aluminum consumption
in Asia through 2010. In addition to the
proposed joint venture at Pingguo, instal-
lation of a new foil production line is
under way at Alcoa Shanghai Aluminum
Products. Alcoa also agreed to form a new
joint venture with China International
Trust & Investment, its equity partner in
Bohai Aluminum. Bohai produces foil,
foil stock, and soft-alloy extrusions.
AFL Automotive Expands
AFL Automotive opened its first opera-
tion in Honduras in El Porvenir, which
will manufacture and assemble electrical
distribution systems (EDS) for customers
in the Caribbean Basin. In Romania,
AFL began operations at a new plant in
Caransebes and increased employment by
50% at the Nadab EDS assembly facility
to serve its customers in Western Europe.
Regional Growth for CSI
Alcoa Closure Systems International (CSI)
posted a 28% increase in sales in Central
Asia, where the overall beverage market
grew only 9%. Moscow-based manage-
ment attributed the growth to improved
quality and distribution systems, intensive
direct marketing and sales opportunities,
higher-margin and value-added products,
and an expanded customer base.
Warrick Operations Diversifies
Warrick (IN) Operations installed two
roll casters and a four-caster infrastructure
which, coupled with the facility’s existing
cold rolling and finishing assets, created a
production flow path that was the catalyst
for Warrick’s reentry to the building and
construction market. Warrick now is sup-
plying aluminum to Alcoa Home Exteriors
for soffits, gutters, and downspouts, and is
exploring continued growth as it evaluates
additional flat-rolled aluminum markets.
21st Century Forum
Currently under construction, the Forum
2004 building in Barcelona, Spain, prom-
ises to become one of the city’s biggest
architectural attractions. Alcoa Arquitectura
in Spain and Alcoa Architectural Products-
Merxheim in France won participation in
the project by taking extra steps to satisfy
the architect’s special design features. The
Alcoa curtain wall façade is made of cus-
tomized Reynobond®cladding panels –
the longest ever made – which are perfo-
rated and bulge-formed to act as a sun
barrier. The panels are painted with Alcoa’s
Duragloss®5000 paint system, which has
the exceptional flexibility necessary to
prevent corrosion. Alcoa Arquitectura
developed a new fixing system to integrate
the panels into the curtain wall.
Sun Power Partnership
Alcoa is working with Spheral Solar
Company to commercialize a concept
that can result in lighter-weight, more
flexible, and larger-capacity solar panels
at a potentially lower cost than current
technologies. Alcoa helped Spheral select
an aluminum alloy and improved the
total reflectance of the sheet to which
its silicon spheres are bonded. The
companies are working to design and
integrate the technology into current
architectural and building products.
Divestitures
• Alcoa World Alumina & Chemicals
reached an agreement to sell its Alcoa
Specialty Chemicals business to Rhone
Capital, an investment firm. The deal
is expected to close in the first quarter
of 2004.
• Alcoa sold its 37% stake in Latasa, an
aluminum can business, to Rexam, a
global beverage-can maker.
• Alcoa completed the sale of its PET
packaging business in Latin America
to Amcor PET Packaging.
• Alcoa sold Permatech®of Graham, NC,
a manufacturer of precision precast
refractory and insulating products, to
a management group.
• In January 2004, Alcoa sold its packag-
ing equipment business to American
Industrial Partners and management.
• In February 2004, Alcoa sold its
automotive fasteners business to the
Kaminski Holdings Group.
• Also in February 2004, Alcoa sold its
10% stake in the Alscon smelter in
Nigeria to the Federal Government of
Nigeria. Alcoa assumed the stake as part
of its acquisition of Reynolds Metals.
NEWS
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Valdecir Miguel Dias,
Poços de Caldas, Brazil
Shi Muchao, Shanghai, China