Alcoa 2012 Annual Report Download - page 38

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Most of the major process areas within the Company have a Technology Management Review Board (TMRB) or
Center of Excellence (CoE) consisting of members from various worldwide locations. Each TMRB or CoE is
responsible for formulating and communicating a technology strategy for the corresponding process area, developing
and managing the technology portfolio and ensuring the global transfer of technology. Alternatively, certain business
units conduct these activities and research and development programs within the worldwide business unit, supported by
the Alcoa Technical Center (ATC). Technical personnel from the TMRBs, ATC and such business units also
participate in the corresponding Market Sector Teams. In this manner, research and development activities are aligned
with corporate and business unit goals.
During 2012, the Company continued to work on new developments for a number of strategic projects in all business
segments. In Primary Metals, progress was made on inert anode technology with tests carried out on a pilot scale.
Progress has been successful in many respects as a result of full pot testing of anode assemblies, although there remain
technical and cost targets to achieve. If the technology proves to be commercially feasible, the Company believes that
it would result in significant operating cost savings, and generate environmental benefits by reducing certain emissions
and eliminating carbon dioxide. No timetable has been established for commercial use. The Company is also
continuing to develop the carbothermic aluminum process, which is in the research and development phase. The
technology holds the potential to produce aluminum at a lower cost, driven by reduced conversion costs, lower energy
requirements and lower emissions at a lower capital cost than traditional smelting.
The Company continued its progress leveraging new science and technologies in 2012. For example, riblets that reduce
aerodynamic drag have been analyzed and produced on a test basis. Self-cleaning nano coatings have been
demonstrated on building products (an example of such was commercialized in 2011 as EcoClean, which is the world’s
first coil-coated aluminum architectural panel that helps clean itself and the air around it). Energy saving sensing
devices are being integrated in Company manufacturing plants. Integrated thermal management products for consumer
electronics have been developed and are being validated by our customers.
A number of products were commercialized in 2012 including new fasteners, aluminum lithium (Al-Li) and more
traditional 7xxx series alloys for various aerospace applications, numerous innovations in the building and construction
market for enhanced thermal performance and increased functionality. The Company continues to develop its
MicromillTM technology and ran numerous customer trials in the rigid container sheet (RCS) and packaging markets.
There has been considerable progress in the development of next generation commercial truck wheels. The Company
has also continued to externally license technology including the A951 pretreatment technology, shaping technology,
and ColorkastTM products for the consumer electronics segment.
Alcoa’s research and development focus is on product development to support sustainable, profitable growth;
manufacturing technologies to improve efficiencies and reduce costs; and environmental risk reductions.
Environmental technologies continue to be an area of focus for the Company, with projects underway that address
emissions reductions, the reduction of spent pot lining, advanced recycling, and the beneficial use of bauxite residue.
As a result of product development and technological advancement, the Company continues to pursue patent protection
in jurisdictions throughout the world. At the end of 2012, the Company’s worldwide patent portfolio consisted of 870
pending patent applications and 1,895 granted patents.
Environmental Matters
Information relating to environmental matters is included in Note N to the Consolidated Financial Statements under the
caption “Environmental Matters” on pages 119-122.
Employees
Total worldwide employment at the end of 2012 was approximately 61,000 employees in 30 countries. About 34,000
of these employees are represented by labor unions. The Company believes that relations with its employees and any
applicable union representatives generally are good.
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