Footnotes / references Financials as of December 31, 2023[update]. References: [1]
Alcoa Corporation (an acronym for "Aluminum Company of America") is a Pittsburgh-based industrial corporation. It is the world's eighth-largest producer of aluminum.[2][3] Alcoa conducts operations in 10 countries. Alcoa is a major producer of primary aluminum, fabricated aluminum, and alumina combined, through its active and growing participation in all major aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling.[4][third-party source needed]
Alcoa emerged in 1888 as the brainchild of Charles Martin Hall, with the funding of Alfred E. Hunt and Arthur Vining Davis. Alcoa was the first mass producer of aluminum. Prior to Alcoa's formation, aluminum was difficult to refine, and a result was more expensive than silver or gold.[5] In 1886, Hall discovered the Hall–Héroult process, the first inexpensive technique for refining aluminum, drastically reducing the price of aluminum, while increasing its availability. Hall approached Hunt and Davis to form a company to bring his process to market; the three founded Alcoa as the Pittsburgh Reduction Company, which expanded quickly. Hunt died in 1898 after fighting in the Spanish–American War. The company changed its name to the Aluminum Company of America in 1907. Alcoa increased production 40% during World War I, and was an important supplier of Aluminum in World War II.
In the 2000's, Alcoa purchased numerous competitors, including Reynolds Group Holdings (makers of Reynolds Wrap). On November 1, 2016, Alcoa Inc. split into two entities: a new one called Alcoa Corporation, which is engaged in the mining and manufacture of raw aluminum, and the renaming of Alcoa Inc. to Arconic Inc., which processes aluminum and other metals.[6] Alcoa has been criticized for its lax environmental record; in 2010 it was the 15th worst polluter in the United States.
A tablet marking where, in November 1888, the Pittsburgh Reduction Company, now Aluminum Company of America, produced the first commercial run of aluminum by the Hall Electrolytic Process. Tablet installed by Historical Society of Western Pennsylvania in 1938.
After graduating from Amherst College in 1888, Arthur Vining Davis joined the new venture because Arthur's father knew Alfred Hunt. At the time, aluminum sold at almost $5 per pound, making it too expensive to be used commercially. They were determined to lower the cost of production using Charles Hall's ideas; Hall, Davis and others worked 12-hour days together for months on the experiments. Their first commercial aluminum pour was on Thanksgiving Day in 1888.[7]
Pittsburgh Reduction Company
The Pittsburgh Reduction Company began with an experimental smelting plant on Smallman Street in Pittsburgh, Pennsylvania with Hunt as president and Hall vice president. In 1891, the company went into production in New Kensington, Pennsylvania. Davis was named general manager and appointed to the board of directors in 1892. In 1895, a third site opened at Niagara Falls.[citation needed]
Hunt's departure
Hunt took leave from the company in 1898 to fight in the Spanish–American War. While in Puerto Rico, he contracted Malaria. Less than a year after his return to the states, he died from complications of the disease at age 44.[8]
By about 1903, after a settlement with Hall's former employer, and while its patents were in force, the company was the only legal supplier of aluminum in the United States.[9][10]
By 1902 New Kensington consisted of 173,000 sq. feet on 15 acres with 276 employees and the company operated hydropower and reduction plants in Niagara Falls, NY (1895), Shawinigan Falls, Quebec (Northern Aluminum Company), mining operations in Bauxite, AR (1901) and reduction facilities in East St. Louis, IL (1902). "The Aluminum Company of America" became the firm's new name on January 1, 1907.[11] Davis was named company president in 1910 when the acronym "Alcoa" was coined. Hall remained a vice president until his death in 1914. It was given as a name to two of the locales where major corporate facilities were located (although one of these has since been changed), and in 1999 was adopted as the official corporate name.[citation needed]
From 1902 until 1915 additional plants in Massena, New York (1903), Alcoa, Tennessee (1911), Edgewater, New Jersey (1915), Badin, North Carolina (1915) came online while New Kensington had 31 buildings in the complex housing six departments (tubes, sheets, rods, bar and wire, extrusion, jobbing, foil) and two subsidiaries (Aluminum Cooking Utensil Company and Aluminum Seal Company). In 1907 it created the "company town" of Pine Grove, New York, for workers outside Massena. In Badin, Alcoa, Maryville and other locations the company funded the construction of schools, parks, playgrounds and medical facilities.[11]
The World Wars
Historian George David Smith notes that "war was good to Alcoa."[12] By the end of World War I Alcoa's New Kensington facility accounted for 3,292 workers—a fifth of the local population—and covered over 1 million square feet of manufacturing space on 75 acres.[11] The war enabled Alcoa to increase production by 40%, and to export some ninety million pounds to the Western Allies.[12]
After WWI, Alcoa obtained the rights to Alfred Wilm's duralumin patent, which led to additional research into other aluminum alloys. By 1923, Alcoa's New Kensington, Pennsylvania plant was using horizontal extrusion presses, with preheated billets, for aerospace and construction applications.[13] One of the first industrial uses was for the Navy's Shenandoah, followed ten years later with airplane applications.[14] The Northern Aluminum Company in Quebec was renamed the Aluminum Company of Canada (ALCAN) in 1925. They were responsible for the rapid development of Arvida, Quebec, a remote area 250 km north of Quebec City. Infrastructure was necessary to support the workforce required by the aluminum plant, so the company funded the construction of schools, parks, playgrounds, and medical facilities.[11]
Davis was named chairman of Alcoa's board of directors in 1928 and remained in that role for thirty years until his retirement.[citation needed]
Aluminum products were of crucial use during World War II.[12] A German U-Boat sank the SS Alcoa Puritan in 1942, as it carried a load of bauxite ore.[15]
Alumax
In 1998, Alcoa acquired Alumax in a cash and share deal for $2.8 billion. Alcoa paid $50 a share in cash for half of the shares and 0.6975 Alcoa share for each of the remaining Alumax shares. Alcoa also assumed $1 billion in debt.[16] Alumax's assets included the Eastalco aluminum smelter in Adamstown Maryland, the Intalco aluminum smelter in Ferndale Washington, and the Kawneer brand of building construction products.[citation needed]
Reynolds
In 2000, Alcoa acquired Reynolds Metals Co. in an all-share deal for $4.5 billion. To clear anti-competition regulatory hurdles, Alcoa was required to sell Reynolds's 25% interest in a Washington smelter and all of Reynolds's alumina refineries. Reynolds owned a 56% interest in the Worsley alumina refinery in Australia, 50% interest in a refinery in Germany and 100% interest in a Texas refinery. Alcoa also planned to sell Reynolds's construction and distribution business and the company's $400 million transportation business.[17] Alcoa sold its packaging and consumer business, formerly called Reynolds Metals, to the Rank Group for $2.7 billion in 2008.[18]
Cordant
In 2000, Alcoa also purchased Cordant Technologies Inc. for $57 a share in cash, or $2.3 billion, and also assumed $685 million of Cordant's debt for a total transaction value of $2.9 billion. Cordant's divisions included Huck Fasteners, Jacobson Mfg. Co., Continental/Midland Group, its 85% interest in Howmet International Inc., and Thiokol Corporation.[19][20][21] In 2001, Alcoa sold Thiokol for $2.9 billion to Alliant Techsystems (ATK).
Chalco
Alcoa purchased an 8% stake of Aluminum Corporation of China (Chalco) in 2001.[22] It tried to form a strategic alliance with China's largest aluminum producer, at its Pingguo facility; however, it was unsuccessful. Alcoa sold their stake in Chalco on September 12, 2007, for around $2 billion.[23][24]
Chemicals
In 2004, Alcoa's specialty chemicals business was sold to two private equity firms led by Rhône Group for an enterprise value of $342 million, which included the assumption of debt and other unfunded obligations.[25]Rhône Group then changed the name to Almatis, Inc.
Corporate relocation
In 2006, Alcoa relocated its top executives from Pittsburgh to New York City while their operational headquarters was still located at its Corporate Center in Pittsburgh. Alcoa employed approximately 2,000 people at its Corporate Center in Pittsburgh and 60 at its New York office.[26] Alcoa moved its headquarters back to Pittsburgh effective September 1, 2017, as part of a general consolidation of administrative facilities around the world.[27][28] In October 2018, Alcoa announced plans to move from Pittsburgh's North Shore to a downtown Pittsburgh location.[29]
Alcan bid
In May 2007, Alcoa Inc. made a US$27 billion hostile takeover bid for Alcan in an attempt to form the world's largest aluminum producer.[30] The bid was withdrawn when Alcan announced a friendly takeover by Rio Tinto in July 2007.[31]
On May 8, 2008, Klaus Kleinfeld was appointed CEO of Alcoa, succeeding Alain Belda.[34] On April 23, 2010, Alcoa's board of directors selected Kleinfeld to the office of chairman, following Belda's planned retirement.[35]
Recycling
On July 16, 2012, Alcoa announced that it would take over full ownership and operation of Evermore Recycling and make it part of Alcoa's Global Packaging group. Evermore Recycling is a leader in used beverage can recycling, purchasing more recycled cans than any other group worldwide.[36]
In June 2013, Alcoa announced it would permanently close its Fusina primary aluminum smelter in Venice, Italy, where production had been curtailed since June 2010.[37]
On January 9, 2014, Alcoa reached a settlement with the U.S. Securities and Exchange Commission and the U.S. Department of Justice over charges of bribing Bahraini officials. Under the terms of the settlement, they will pay the SEC $175 million to settle the charges. To settle the criminal claims with the DoJ, Alcoa World Alumina (AWA, a company within Alcoa World Alumina and Chemicals) is pleading guilty to one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). AWA will pay the DoJ $223 million in five equal installments over the next four years, bringing the company's total bill for the scandal to $384 million.[38]
Company split
In June 2016, Alcoa Inc. announced plans to split itself into two companies. Alcoa Inc would be renamed as Arconic and would take over the business of designing and building processed metal parts, primarily for the automotive and aerospace industries. A new company, Alcoa Corporation, would be set up and spun out of Alcoa Inc. and retain the Alcoa name. Alcoa Corp. would continue the business of mining, smelting, and refining of raw aluminum.[39] The split was completed on November 1, 2016.[6]
Environmental record
The Political Economy Research Institute ranks Alcoa 15th among corporations emitting airborne pollutants in the United States. The ranking is based on the quantity (13 million pounds in 2005) and toxicity of the emissions.[40] In April 2003, Alcoa Inc. agreed to spend an estimated $330 million to install a new coal-fired power plant with state-of-the-art pollution controls to eliminate the vast majority of sulfur dioxide and nitrogen dioxide emissions from the power plant at Alcoa's aluminum production facility in Rockdale, Texas. The settlement was the ninth case the Bush administration pursued to bring the coal-fired power plant industry into full compliance with the Clean Air Act. Alcoa was unlawfully operating at the Rockdale facility since it overhauled the Rockdale power plant without installing necessary pollution controls and without first obtaining proper permits required by "New Source Review" program of the Clean Air Act.[41] In February 1999, Alcoa cleaned soils and sediment contaminated with polychlorinated biphenyls (PCB) and lead at the York Oil federal Superfund site in Moira, New York, in accordance with the Environmental Protection Agency. The site, a former waste oil recycling storage facility, accepted waste oil from a number of companies, including Alcoa. The facility was improperly managed and operated and, as a result, soils on the York Oil Property and nearby wetlands sediments and groundwater were contaminated. The United States Environmental Protection Agency (EPA) issued a Superfund Unilateral Order on December 31, 1998, requiring Alcoa to excavate, treat and dispose of the contaminated wetlands sediments.[42]
Operations by country
Jamaica
Alcoa formed the Alcoa Minerals of Jamaica subsidiary on the island in 1959, shipping their first load of bauxite in 1963 from Rocky Point. Later in 1972, Alcoa established a 500,000 tonne per year refinery where they process bauxite into alumina. They have continued to upgrade the plant through the years and its now capable 1,425,000 tonnes per year.[citation needed] In 1988 the Jamaican government gained a 50% share in the subsidiary and renamed the operation to Jamalco, Alcoa being the managing partner. Expansion of the operation in 2007 resulted in Alcoa owning a total of 55% of the operation. Alcoa continues to mine bauxite in the Jamaican parishes of Clarendon and Manchester while competitors' operations take place in nearby parishes.[citation needed]
Dominican Republic
In the 1970s, Alcoa was involved in negotiations with the Dominican Republic government concerning its bauxite mining operations. The U.S. Department of State expressed concerns that the Dominican Republic might follow Jamaica's lead in imposing higher taxes on Alcoa's operations. This period was marked by intense discussions and negotiations regarding the taxation and revenue from bauxite mining, highlighting the complexities of international business operations and the impact of global commodity markets on local economies.[43]
Alcoa Road, also known as El Aceitillar, is a significant part of Alcoa's legacy in the Dominican Republic. Originally constructed for a bauxite mine, it now leads to Sierra de Bahoruco National Park. This area offers an opportunity to observe endemic species and serves as a reminder of the environmental dimensions of industrial operations. Alcoa Road's transition from an access route for mining to a gateway for environmental observation underscores the evolving relationship between industry and conservation.[44]
Ghana
Alcoa's affiliate in Ghana, the Volta Aluminum Company, was completely closed between May 2003 and early 2006, due to problems with its electricity supply.[45][46]
In 2005, Alcoa began construction in Iceland on Alcoa Fjarðaál, a state-of-the-art aluminum smelter and the company's first greenfield smelter in more than 20 years,[48] albeit under heavy criticism by local and international NGOs related to a controversial dam project exclusively dedicated to supplying electricity to this smelter.
The Fjarðaál smelter in eastern Iceland was completed in June 2007, and brought into full operation the following April. The plant processes 940 tons of aluminum a day, with a capacity of 346,000 metric tons a year,[49] making it Alcoa's second largest capacity smelter. For power, the plant relies on the Kárahnjúkar Hydropower Plant, constructed and operated by the state owned Landsvirkjun specifically for the smelting operation. That project was subject to controversy due to its impact on the environment.[citation needed]
In 2006, Alcoa and the government of Iceland signed an agreement on instigating a thorough feasibility study for a new 250,000 tpy (Tons Per Year) smelter in Bakki by Húsavík in Northern Iceland. In October 2011, the proposed project was dropped because "the power availability and proposed pricing would not support an aluminum smelter".[4][third-party source needed]
Alcoa announced plans to close the office in Reykjavik.[citation needed]
Russia
In 2005 Alcoa acquired two major production facilities in Russia, at Samara and Belaya Kalitva.[50]
Wales
On November 21, 2006, Alcoa announced that it planned to close the Waunarlwydd works in Swansea, with the loss of 298 jobs. Production ceased at the Swansea plant on January 27, 2007. A small site closure team worked at the site until December 31, 2008. The site is still owned by Alcoa, but is now managed locally and renamed, Westfield Industrial Park.[citation needed] Several of the large buildings are leased out to local businesses.[51][52]
Australia
Alcoa operates bauxite mines, alumina refineries and aluminum smelters through Alcoa World Alumina and Chemicals, a joint venture between Alumina Limited and Alcoa. Alcoa operates two bauxite mines in Western Australia—the Huntly and Willowdale mines. Alcoa World Alumina and Chemicals owns and operates three alumina refineries in Western Australia: Kwinana, Pinjarra, and Wagerup. The Wagerup expansion plans were put on hold due to the 2008 Global Financial Crisis. In January 2024, Alcoa announced it would cease alumina production at its Kwinana refinery that year.[53] Two aluminum smelters are also operated in the state of Victoria at Portland and Point Henry; the Point Henry smelter was scheduled to be closed in August 2014.[54] Alcoa Australia Rolled Products, a 100% Alcoa Inc. venture, operates two rolling mills. The Point Henry Rolling mill in Victoria and the Yennora rolling mill in N.S.W. have a combined rolling capacity of approx. 200,000 tonnes. Alcoa uses 12,600 GWh or 15% of Victoria's electricity annually.[55]
Alcoa's Western Australian Wagerup plant has a troubled history in the context of claims that pollution from the plant has had an adverse impact on the health of members of the adjacent local community.[56][57][58]
Alcoa created a plant just outside Maryville in Blount County, Tennessee. To support the factory, Alcoa built a small city and named it as such. The Alcoa Tenn Federal Credit Union was the first employee created credit union in the state. The plant is no longer an Alcoa business.[59]
Alcoa's Massena West plant is the longest operating smelter in the United States, having been in continuous operation since 1902. The Reynolds Aluminum Plant became Massena East when the companies merged in 2000.[citation needed]
Alcoa had a smelting plant in Badin, North Carolina from 1917 to 2007 and continued a hydroelectric power operation there until February 1, 2017, when the Yadkin Hydroelectric Project was sold to Cube Hydro.[60]
Alcoa also operates an aluminum smelting plant of similar size to the one in Tennessee in Warrick County, Indiana, just east of Newburgh. Vectren Energy operates a coal power plant on the site to provide electricity. In 2021, Alcoa retained the aluminum smelter and generating station while selling the rest of the facility to Kaiser Aluminum. This sale included the cast house, ingot facilities, hot mill, cold mills, and finishing mills.[citation needed]
Alcoa maintains several Research and Development Centers in the United States. The largest one, Alcoa Technical Center, is located East of its Pittsburgh Headquarters at Alcoa Center, Pennsylvania. The "Tech Center" is as large as some college campuses, has its own zip code and maintains an extensive intellectual and physical resource for innovation.[citation needed] Alcoa's extensive safety program continuously improves safety at the Tech Center. After Paul O'Neill became Alcoa CEO in 1987, Alcoa became one of the safest companies in the world, despite the aluminum industry's inherent risks.[61][better source needed]
Alcoa plans to close offices in Richmond, Virginia; Nashville, Tennessee; and Chicago.[28]
Alcoa Steamship Company
The Alcoa Steamship company was a subsidiary of ALCOA since the company was formed in 1917.[62]
^THURWACHTER, MARY (August 22, 2019). "The Visionaries". Bocaratonobserver.com. Bocaratonobserver. Retrieved March 25, 2023.
^"Alfred E. Hunt". RoyAHuntFoundation. Roy A Hunt Foundation. Archived from the original on March 31, 2023. Retrieved March 31, 2023.
^Hachez-Leroy, Florence (2006). "Aluminum industry: a Heritage for Europe"(PDF). The International Committee for the Conservation of Industrial Heritage. Proceedings, TICCIH Congress. Archived from the original(PDF) on November 27, 2007. Retrieved November 3, 2007.
^Smith, Richard (1965). The Airships Akron & Macon, The Flying Aircraft Carriers of the United States Navy. Annapolis, Maryland: Naval Institute Press. p. 178. ISBN0870210653.
^Jones, Halbert (2015). Foreign Relations of the United States, 1969–1976, Volume E–11, Part 1, Documents on Mexico; Central America; and the Caribbean, 1973–1976. Washington: United States Government Printing Office.
.svg){kind=logo}
US$10.55 billion (2023)_(6038538949).jpg)
