Primary Aluminum Consumption Growth Rates
Primary Aluminum Consumption Growth Rates

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2015 Market Conditions
2012 Market Conditions
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Capturing Opportunities, Minimizing Risks 


We are transforming our portfolio by building a lightweight, multi-material, value-add company to capture profitable growth while creating a globally competitive commodity business.


Many of our core markets—aerospace, automotive, commercial transportation, and building and construction—are undergoing their own transformations due to increasing government regulations and customer demand for lighter, stronger, and more sustainable products.


Customers in these markets are turning to aluminum, aluminum alloys, and multi-material solutions to create products that improve fuel efficiency and emit fewer greenhouse gases, while offering superior performance. Global consumption of aluminum increased 9% in 2014 and is expected to increase another 6.5% in 2015.


To capture the opportunities, we have developed a strong innovation pipeline that is delivering game-changing products and technologies for our customers. We are also increasing the competitiveness of our commodity business by reducing our cost position and expanding our portfolio of value-add products to capture emerging growth opportunities. In 2014, 65% of our primary metal shipments were value-add casthouse products.


A full discussion of our business strategy and performance is available in our 2014 Annual Report and Form 10-K.


Primary Aluminum Consumption
  2015 Projected Consumption
Millions of metric tons
2015 Projected Demand Growth Rates
China 29.2 9.5%
Europe 6.7 1.5%
North America 6.7 5%
North Asia 4.3 1%
India 2.2 8%
Southeast Asia 2.1 7%
Middle East and North Africa 2.1 5%
Other¹ 2.1 4%
Brazil 1.1 0.5%
Russia 1.0 -2%
Global 57.5 6.5%
2015 Market Conditions
  North America Europe China Global
Heavy Truck & Trailer
Beverage Can Packaging
Commercial Building & Construction
Industrial Gas Turbine      



We face a number of challenges as we seek to maximize the value we provide to all of our stakeholders, transform our operations, and more fully integrate sustainability into our business. These include:


Details on how we are approaching these challenges can be found at the links provided.


Risk Management

Our risk-management process was structured around the Integrated Framework for Enterprise Risk Management from the Committee of Sponsoring Organizations of the Treadway Commission and in accordance with the International Organization for Standardization’s ISO 31000 (risk management).


We use the process to identify and evaluate a broad spectrum of risks. It is structured using our key business drivers and organizational goals to ensure that all aspects of the business have been covered. Business drivers include our reputation, brand, earnings, and operating margins. Organizational goals include excellence in stewardship of the environment, health and safety, a consistently fair representation of financial information, organic growth, and more.  


The risks identified are grouped into risk areas and presented to management to determine how they should be prioritized. Our process is multi-dimensional and focuses on several aspects, including likelihood of occurrence, level of impact, and mitigating risk factors. Each is considered in accessing and prioritizing risk, with more emphasis placed on likelihood and impact.


The collaborative process by which risks are identified, evaluated, and managed ensures that senior management remains vigilant of key risks impacting the company. The Alcoa Board of Directors maintains oversight of our risk management, and our management reports on specific risks on a periodic basis.


A discussion of the significant risks we face can be found in our Form 10-K for the year ended December 31, 2014. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may materially adversely affect us in future periods.


Any forecast set forth in this section speaks as of the date it was originally presented. Alcoa is not updating or affirming any of the forecasts as of today’s date. The provision of this information shall not create any implication that the information has not changed since it was originally presented.