Boston, MA 12/13/2013 (wallstreetpr) – Alcoa Inc (NYSE:AA),the company which is involved in the management and production of primary aluminium, fabricated aluminium and alumina, has always faced many challenges with great efficiency. It has tried and succeeded to come out of any possible storm.
Problem
Right now, the company, at the request of various automakers, is involved in the manufacture of the patented Alcoa 951 bonding-process. The problem is that the process is also known to the rivals of the company that are likewise involved in supplying aluminium or aluminium products to the automakers.
Advantage
The company, Alcoa, coats aluminium with the material that resists corrosion. The company also makes the surface of aluminium so that adhesives can be used with them. This will help automobile makers a lot producing additional load-bearing parts that can be designed with aluminium. Novelis, another big supplier of aluminium, says that it can use Alcoa 951. However, it has its own coating. Alcoa expects the demand of aluminium to double over the next ten years.
Demand For Aluminium
North American International Auto Show is scheduled to be held this coming January. It is also anticipated that Ford will introduce its F-150 pickup truck which has used an extensive amount of aluminium. There are many other vehicles such as Jaguar XKF, Audi A8, etc., that are made of aluminium. Therefore, the demand for aluminium will increase.
Change
Randall Scheps, the Director of Automotive Sheet Business of the company, said that 951 is a key which will transition from general applications to special ones or more structured ones. Now, the automobile industry does not depend on a single supplier for its components. It can bargain components for lower prices which keep on the competition. So, the company has licensed its 951 process to Chemtall, a German company. This company deals with metals, plastics and chemicals. It will be involved in producing and selling 951 to various aluminium suppliers and Alcoa will charge for that. This way, the company wins.
