Chairman and Chief Executive Officer
Chief Executive Officer Statement
2015 was a pivotal year in Alcoa’s multi-year transformation. We exited high-cost commodity assets to further reduce our cost position. We continued investing in markets, such as aerospace and automotive, where our innovation edge gives us tremendous profitable growth opportunities. And we took the next step to unlock the full value of our powerful portfolio—announcing the separation of Alcoa into two independent publicly-traded companies, an Upstream company, which will operate as Alcoa, and a Value-Add company, which will be named Arconic.
As we prepare to launch two strong companies in the second half of 2016, we remain laser-focused on helping our customers drive toward a more sustainable future while improving our own environmental performance.
Our future Value-Add business, Arconic, will be a leader in markets such as aerospace, automotive, commercial transportation, and building and construction. Our customers need products and technologies that improve efficiency, save energy, and conserve resources—without compromising performance. This intersection is where we excel…
- We power efficiency in the skies: Our high-performance materials are found on virtually every aircraft, spacecraft and jet engine flying today. High-performance castings, specialized rings, and forged fan blades are key enablers of the next generation of jet engines. Our aluminum-lithium alloys are up to 7% less dense than the current generation and can lower the weight of next-generation aircraft applications by up to 10% versus composite structures.
- We’re light weighting automotive: We are at the forefront of building light, strong, aluminum-intensive vehicles for decades, and last year the aluminum-auto revolution hit U.S. shores when the nation’s highest selling vehicle went aluminum-intensive. Built with Alcoa’s military-grade aluminum, the new F-150 truck is 317 kilograms (700 pounds) lighter than its predecessor, saving 4.6 metric tons of carbon dioxide emissions during each truck’s lifetime. But we didn’t stop there—our Micromill™ materials, which are 30% lighter and twice as formable as their steel counterparts, will debut on this year’s truck.
- We’re building a greener future: We create thermally efficient architectural aluminum systems that help improve building energy-efficiency by up to 50%. Our state-of-the-art framing and wall systems are also hurricane- and blast-resistant, making buildings more resilient and increasing occupant safety.
Our future Upstream company, the new Alcoa, has continued to improve its cost position, and, at the same time, reduce its environmental footprint. It has long been recognized for its commitment to sustainable bauxite mining and rehabilitation, emissions reduction, and resource management practices. As a cost-competitive industry leader in bauxite, alumina, and aluminum, we are the partner of choice for sourcing sustainably produced aluminum for industries, such as consumer electronics, packaging, automotive, and aerospace. In 2015, we launched a new range of patented specialty alloys to further address light weighting in the automotive industry.
In 2015, Alcoa reduced absolute greenhouse gas emissions by another 5.5 million metric tons. We continue to reduce our environmental footprint with innovative technologies like residue filtration, which will reduce the amount of land required to store residue and save approximately 1.2 gigaliters of water annually at our Kwinana refinery in Australia.
With the support of the Alcoa Foundation, we contributed to infectious disease prevention in Guinea in the wake of the 2015 Ebola outbreak. In addition, this year marked the fifth year of Alcoa Foundation’s participation in American Forests’ “Partnership for Trees” program. As part of Alcoa’s “Ten Million Trees” by 2020 initiative, Alcoa Foundation and American Forests have planted more than 1.1 million trees globally in 50 communities where Alcoa has a presence.
When Alcoa launches two new companies in the second half of 2016, both will carry forward the values that have made this company great for 127 years—a continued drive to improve our handprint through innovation, and an ongoing commitment to sustainability across our global footprint.
Chairman and Chief Executive Officer