De-integration isn’t over for aluminum mart

Dec 21, 2011 | 04:14 PM | Suzy Waite

Tags  Constellium, Richard Evans, consolidation, disaggregation, Rio Tinto Alcan, Alcoa, Norsk Hydro, Novelis fabricator

NEW YORK — The global aluminum industry has emerged from the recession a more consolidated but less vertically integrated sector, and such large-scale reshaping is unlikely to change any time soon, an industry veteran told AMM.

"The general trend has been (toward) splitting the vertical integration chain. My belief is that’s likely to continue," said Richard B. Evans, interim chairman and chief executive officer of downstream aluminum company Constellium.

Disaggregation in the aluminum sector began in earnest in January 2005, Evans said, when Alcan Inc. spun off Novelis Inc. to form a separate rolling company (AMM, Jan. 6, 2005). A number of other large-scale aluminum producers have since shed their downstream assets as well, the most recent example being Rio Tinto’s divestment of its engineered products group, which is now Constellium.....

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