Alcoa 2015 Annual Report Download - page 20
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Unrivalled Cast Products network
Alcoa has an unrivalled network of 17 casthouses globally.
We’ve steadily grown our cast products business by offering
differentiated, value-add aluminum products that are cast into
specifi c shapes to meet the needs of customers. Shapes include
value-add slab and billet products for the automotive and
extrusion market. Our Upstream value-add portfolio provides
profi ts throughout the market cycle and from 2010 to 2015, our
casting business produced $1.5 billion in incremental margins.
Our value-add specialty foundry alloys continued to create
value for customers and captured demand in key markets,
such as the automotive sector. In 2015, we introduced
EZCAST™, VERSACAST®, SUPRACAST™, and EVERCAST™—
advanced alloys with improved thermal performance and
erosion resistance. These highly-engineered alloys provide value
for customers and have already qualifi ed with top tier original
equipment manufacturers. Trials are underway with more
planned in 2016.
Substantial Energy assets
Alcoa’s substantial energy assets increase operational
fl exibility for our energy requirements while also enabling
the business to profi t from market cyclicality. Maintaining
cost discipline, we supply in-house energy requirements
at the lowest possible cost and also sell power to external
customers. Approximately 70 percent of Alcoa-generated
power is sold externally, driving signifi cant earnings.
Additionally, we also acquire energy for our operations.
In 2015, Alcoa of Australia Limited secured a new 12-year
gas supply agreement (starting in 2020) to power its alumina
refi neries in Western Australia. Combined with a number
of smaller agreements, it now has secured approximately
75 percent of its annual Western Australia natural gas
requirement, replacing existing long-term contracts,
which expire at the end of the decade.
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