Alcoa To Sell Foil Division

Alcoa, industry news,aluminium, economic downturn, packaging

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Alcoa intends to divest four non-core downstream businesses including global aluminium foil operations as part of belt-tightening measures to cope with the global economic downturn. These four businesses generated revenues of about US$ 1.8 billion and an estimated post-tax operating loss of approximately US$ 105 million during 2008.

Other measures include cutting back on total primary aluminium output by more than 750,000 MT per year (18 per cent of annualised output), scaling down alumina output to 1.5 million MT per year and reducing headcount by 13,500 jobs. All curtailments will be fully implemented by the end of the first quarter of 2009.

For the fourth quarter of 2008, Alcoa reported a loss of US$ 1.19 billion against a profit of US$ 632 million in Q4 2007. Sales were down 19 per cent from US$ 7 billion to US 5.7 billion.