For the 2010 to 2013 period, Alcoa said that it is on track to generate an additional combined US$1.8 billion in revenue. The company also reported a strengthened commodity business, with lower cost positions in both alumina and aluminium.
“Alcoa’s strategy to grow our value-add businesses while lowering the cost base of our commodity business is working,” said Alcoa Chairman and CEO, Klaus Kleinfeld. “We have made significant strides to reposition the vompany and are announcing a clear road map to further strengthen our competitive position while driving value-add growth at historic profitability levels.”
Alcoa's engineered products and solutions business is on track to generate US$1 billion incremental revenue, while global rolled products is expected to generate US$800 million incremental value-add revenue.
Global primary products, which includes aluminium powder, has lowered its cost position in both aluminium smelting and alumina refining, having now reached the 43rd percentile on the global aluminium cost curve, and 27th percentile on the global alumina cost curve. These shifts represent an 8 point movement and 3 point movement respectively since 2010.
For its engineered products and solutions segment the company plans US$1.2 billion in incremental revenue growth by 2016 and for global rolled products, US$1.0 billion in incremental revenue growth by 2016. For global primary products it Alcoa intends to improve its position on global alumina cost curve by 6 percentage points, from the 27th percentile to 21st percentile, and improve its position in global aluminium cost curve by 5 percentage points, from the 43rd percentile to 38th percentile.
