Alcoa Inc. (AA) stated that the company's Asia-Pacific regional headquarters will report to Alcoa's Business Excellence and Corporate Strategy organization, which is part of an initiative to support the expanding footprint of Alcoa's three business groups in the fast-growing and strategically important Chinese market.
This change goes into effect on July 1, 2011.
Asia-Pacific President Jinya Chen was elected Vice President of Alcoa by the company’s board of directors and will oversee Alcoa’s China strategy. Chen joined the company in 2007.
The company also announced that Jiming Zhu will join Alcoa as President of China Rolled Products, with responsibility of managing all of Alcoa's Global Rolled Products (GRP) operations in China. Zhu succeeds Mark Vrablec. Zhu, who was chairman of Caterpillar China, will join the company in mid-July.
Alcoa expects to grow its rolled products business three times faster than the market in the next three years by expanding its reach to customers in China’s automotive, packaging and consumer electronics markets.
Alcoa, a Pennsylvania-based corporation, is among the world’s leading producers of primary and fabricated aluminum and alumina. It involves the technology of mining, refining, smelting, fabricating and recycling of aluminum. We believe that Alcoa’s cost reduction efforts are, to some extent, offsetting the negative impact of higher energy and raw material costs on profitability.
The company is divesting underperforming assets through its restructuring program. The annual global consumption of aluminum products, both upstream and downstream, is expected to double over the next 15 years. This consumption boom will be driven primarily by growth in China, India, Russia and Brazil, whose demographics are accelerating development.
Alcoa faces stiff competition from Aluminum Corporation Of China Limited (ACH), Rio Tinto plc. (RIO) and BHP Billiton Ltd. (BHP).
Currently, Alcoa has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term (6 months) Neutral recommendation.
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