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.

“In the last few years, we have successfully transformed Alcoa to create two strong value engines that are now ready to pursue their own distinctive strategic directions,” said Klaus Kleinfeld, chairman and CEO. “After steering the company through the deep downturn of 2008, we immediately went to work reshaping the portfolio.”

Upon completion of the transaction, Kleinfeld will lead the value-add company as chairman and CEO. He will also serve as chairman of the Alcoa, what it refers to as “the upstream company,” for the initial phase.

Each company will have its own independent board of directors that will include members of the current Alcoa board. Full management teams and boards for both companies will be named in the months leading up to the launch of the two companies in the second half of 2016.

After the separation, the upstream company will include 64 facilities worldwide, and approximately 17,000 employees. Revenues for the 12 months through June 30, 2015 totaled US$13.2 billion, with US$2.8 billion in earnings before interest, taxes, depreciation and amortization (EBITDA).

After the separation, the value-add company will have 157 globally diverse operating locations and approximately 43,000 employees. Pro-forma revenues for the 12 months through June 30, 2015 totaled US$14.5 billion, with US$2.2 billion in pro-forma EBITDA.

According to Alcoa, the value-add company will be “an unparalleled leader in aluminum commercial truck wheels and will hold the number one market position in North American architectural systems.”

The plan still faces final approval by the Alcoa board of directors and a favorable opinion of legal counsel with respect to the tax-free nature of the transaction for U.S. federal income tax purposes.