Truck Wheels Maker Alcoa Splitting Into Two Companies
NEW YORK - A company known for its truck wheels, among other lighter weight metal products, plans to separate into two independent, publicly traded companies. The move by Alcoa Inc. will result in a yet to be named company, what it currently calls "the value-add company," that will include its transportation, rolled, engineered and construction products. The other will keep the Alcoa name and will include its bauxite-mining, alumina-refining and aluminum-production businesses. The transaction, expected to be completed in the second half of 2016, has been unanimously approved by the Alcoa board of directors. According to the Wall Street Journal, the move comes in the wake of depressed aluminum prices as China has flooded the market with lower metals prices, and the company seeing its stock price fall 43% this year.