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News

Alcoa realigns business to better serve global markets

Alcoa : 20 October, 2004  (New Product)
Alcoa today announced a reorganization of its management structure to better align itself with global markets.
Alcoa today announced a reorganization of its management structure to better align itself with global markets.

Alcoa will create a new global primary business, serving the aluminium and alumina markets, and a new global extruded products business. It will also create an integrated North American and European business serving the mill products markets. The rigid packaging business, with major operations in the United States and Australia, will be organized into a new global business group, and combined with Alcoa's Asia operations, and the global industrial foil business.

These four new businesses, along with two existing global businesses serving the packaging and transportation markets, will give Alcoa a more simplified structure better suited to serve its customers. The leaders of these six businesses will report to Alain Belda, Alcoa Chairman and CEO.

To continue its growth strategy, the company will rely on regional presidents, who have primary responsibility for negotiating expansions in Europe, Asia, Australia, and Latin America. A new post, Executive Vice President for People, ABS, and Culture, will drive corporate initiatives, such as deployment of the Alcoa Business System and quality.

'Globalization continues to transform the way our business operates,' said Alcoa Chairman and CEO Alain Belda. 'Today's changes will help us be more agile in swift-moving markets and allow us to better leverage our global manufacturing capability. The new management team and structure give us an opportunity to further reduce costs, improve productivity, and grow our business.'

Bernt Reitan will run the new Global Primary Products business, encompassing the company's aluminium smelters, alumina refineries, energy assets and mines. The European primary business, headed by Luis Fossati, and the Latin American primary operations, directed by Josmar Verillo, will now report to Reitan. This business, with approximately $5.7 billion in annual third-party revenues, will be based in New York City.

Helmut Wieser will lead the new North American and European Mill Products group with approximately $3.3 billion in annual revenues. Philippe Royer will become the new President of European Mill Products, reporting to Wieser, along with Bob Wetherbee, who is the President of North American Mill Products. Wieser's group will be based in New York City.

Mario Longhi will head up a new Global Extruded and End Products group, serving the extrusion and building and construction markets. Dave Dobson, the President of North American Extruded Products, and Dave Schlendorf, the President of Alcoa Building and Construction Systems, will report to Longhi, along with the European Extruded Products business. Longhi's group has approximately $3.1 billion in revenues and will be based in Geneva, Switzerland.

Joe Muscari will take a new role as head of the Rigid Packaging, Foil, and Asia group. Muscari will oversee the company's global can sheet business strategy and its assets in North America, Latin America, and the Asia Pacific. He will also develop a global strategy for a new, global industrial and commercial foil business. Muscari will continue to have responsibility for Alcoa's operations in Asia and the growth strategy there. The group has approximately $2.9 billion in revenues and will be based in New York City.

Bill Christopher will continue to lead Alcoa's Aerospace, Automotive and Commercial Transportation group with approximately $4.6 billion in revenues. Bill Leahey will continue to direct the global Packaging and Consumer group with approximately $3.8 billion in revenues. Those groups are based in Cleveland, Ohio and New York City respectively.

Paul Thomas will now serve in a new position of Executive Vice President for People, ABS, and Culture. In that role, he will have primary responsibility for driving the company's major change initiative, deployment of the Alcoa Business System. Functions reporting to Paul include human resources, communications, Environment, Health and Safety, quality, operations management consulting, and marketing services. Hamish Petrie, Vice President for People and Communication, will retire in 2005 after supporting the transition.

To help expand the company's global footprint, Alcoa will rely on the leadership of key executives with proven expertise in driving growth: Ric Belda in Europe; Wayne Osborn in Australia; Lloyd Jones in the Asia Pacific region; and Josmar Verillo in Latin America. In addition to their other responsibilities, these executives will coordinate expansion in their regions, negotiations on long-term energy contracts, and public strategy. Ric Belda will also oversee the integration of the pending acquisition of manufacturing assets in Russia.

Ricardo Belda, 60, Executive Vice President, became Group President, Alcoa Europe in 2000. He became an executive vice president of Alcoa in 2001 and is a member of Alcoa's Executive Council.

Mario Longhi, 50, was most recently president of Alcoa Howmet Castings, which produces high-grade investment castings for the aerospace and gas turbine markets based in Cleveland, Ohio. He was elected a vice president of Alcoa in 2001 and will become a member of Alcoa's Executive Council.

Joseph Muscari, 58, was most recently Group President, Asia and Latin America. He became an executive vice president of Alcoa in 2002 and is a member of Alcoa's Executive Council.

Hamish Petrie, 57, assumed accountability for global human resources in 2000 and was made a vice president of Alcoa in 2001. Late in 2001, he became vice president of people and communications and a member of Alcoa's Executive Council.

Bernt Reitan, 56, became Group President of Alcoa's primary products division in 2003, with responsibility for strategic and technical management of the company's smelting and alumina refining facilities worldwide. He will become an executive vice president of Alcoa and is a member of Alcoa's Executive Council.

Philippe Royer, 42, joined Alcoa in 2002 as president of Extrusions and End Products for Alcoa Europe. Before working at Alcoa, he had been president of German aluminium company VAW AG's foil business.

Paul Thomas, 48, has run Alcoa's North American Fabricated Products organization, including the Mill Products and Engineered Products businesses. He also chairs Alcoa's Employee Relations Council, which involves coordinating employee relations processes in Alcoa's US operations. He has been a vice president of Alcoa since 1998 and is a member of Alcoa's Executive Council.

Helmut Wieser, 51, joined Alcoa in 2001 as president of Alcoa's flat rolled products business in Europe. Before that, he worked for Austria Metal Group (AMAG) where he was an executive member of the board and chief operating officer. He will become a member of Alcoa's Executive Council.
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