Alcoa 2015 Annual Report Download - page 38

In January 2016, Alcoa announced that it will permanently close its 269,000 mtpy Warrick Operations smelter in
Evansville, Indiana by the end of the first quarter of 2016. The rolling mill and power plant at Warrick Operations will
continue to operate.
As noted above, Alcoa and Ma’aden have developed an aluminum smelter in the Kingdom of Saudi Arabia. The
smelter has an initial nameplate capacity of 740,000 mtpy. Since mid-2014, the smelter has been operating at full
capacity and it produced 757,833 mt in 2015.
In 2014, Alcoa and the Brunei Economic Development Board agreed to extend for four years an existing MOU to
enable more detailed studies into the feasibility of establishing a modern, gas-powered aluminum smelter in Brunei
Darussalam to follow a period of strategic assessment of global market conditions.
In 2007, Alcoa and the Greenland Government entered into an MOU regarding cooperation on a feasibility study for an
aluminum smelter with a 360,000 mtpy capacity in Greenland. The MOU also encompasses a hydroelectric power
system and related infrastructure improvements, including a port. Due to unfavorable global market conditions for
primary aluminum, Alcoa and the Greenland Government entered into negotiations in 2015 to address, among other
subjects, formalizing an extension of estimated dates for Alcoa to achieve certain of its undertakings under the MOU,
and providing the Greenland Government latitude to develop hydro resources throughout Greenland. Negotiations
between the parties are anticipated to complete in 2016.
Global Rolled Products
The Company’s Global Rolled Products segment represents Alcoa’s midstream operations. For a discussion of this
segment’s business, see “Results of Operations—Segment Information” in Part II, Item 7. (Management’s Discussion
and Analysis of Financial Condition and Results of Operations) and Note Q to the Consolidated Financial
Statements—Segment and Geographic Area Information in Part II, Item 8. (Financial Statements and Supplementary
Data).
In March 2015, Alcoa sold its Russia-based aluminum mill in Belaya Kalitva, Alcoa Metallurg Rus, to a subsidiary of
Stupino Titanium Co.
In September 2015, Alcoa announced the completion of an expansion at its Tennessee facility dedicated to supplying
aluminum sheet to the automotive industry. The Tennessee plant will provide aluminum sheet to automakers such as
Ford Motor Company, Fiat Chrysler Automobiles and General Motors. The expansion created approximately 200 full-
time jobs.
In 2014, Alcoa announced a $190 million investment at its Davenport Works facility to expand its product offerings in
the aerospace and industrial markets through the installation of technology that will enhance the performance of thick
aluminum and aluminum-lithium plate for use in various applications such as wing ribs and fuselage frames for the
aerospace market. Construction on this project began in 2015, with first customer production expected in 2017.
In October 2015, Alcoa entered into an agreement with the Danieli Group, a global supplier of plants and equipment to
the metals industry, to license and commercialize its Micromill technology. Under the agreement, Alcoa licenses the
patented technology to Danieli that will manufacture and sell Micromill equipment to mill operators that will also be
licensed by Alcoa. The Alcoa-patented Micromill process produces metal with a microstructure that is distinct from the
microstructure obtained from conventional rolling, allowing the production of an aluminum alloy for automotive
applications that has 40 percent greater formability and 30 percent greater strength than the incumbent aluminum used
today while meeting stringent automotive surface quality requirements. Additionally, automotive parts made with
Micromill material will be twice as formable and at least 30 percent lighter than parts made from high strength steel.
The Micromill will enable the next generation of automotive aluminum products, and equip Alcoa to capture growing
automotive demand.
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