Aluminum heavyweight
Alcoa Inc.
(
AA
) has achieved a key milestone as its aluminum die casting
technology, dubbed ColorKast, has been used by Samsung in its new
digital camera, marking the first major push of this innovative
technology in the consumer electronics space.
ColorKast allows Alcoa to make color anodizable aluminum die cast
components with high-end cosmetics. This breakthrough technology
was featured on Samsung's new digital camera, NX210, which has a
built-in Wi-Fi connectivity. ColorKast's performance and aesthetic
requirements were validated with Alcoa's South Korean marketing
ally Global Kwangsung before its entry to the market. Alcoa said
that other consumer electronic makers are keen on using this novel
technology in their products.
ColorKast enables consumer electronics manufacturers to develop
high-end, lightweight and cost-effective components for portable
electronic devices leveraging Alcoa's proprietary alloy, process
and finishing technologies, developed at the company's technical
center in New Kensington, Pennsylvania.
Products made from ColorKast not only have the rich, metallic look
and feel of anodized aluminum but are also eco-friendly given the
infinite recyclability of aluminum. This results in a better green
solution vis-à-vis plastics and/or composites. Recycled aluminum
produces 95% less greenhouse gas emissions compared to new
aluminum.
Alcoa saw roughly 18% growth in the consumer electronics end market
in the last reported quarter. It remains actively focused on
boosting its foothold in this fast-growing market. The company sees
healthy growth in aluminum content in electronic devices,
especially in products like notebooks and LCD TVs, over the next
few years.
Use of aluminum in consumer electronics has been growing rapidly as
the industry increasingly looks for the metal for its light weight,
recyclability, aesthetic quality and the ability to be a heat sink.
Given these qualities, the use of the metal is increasing in
hand-held and other portable electronic devices.
Alcoa expects the global demand for aluminum to grow 7% in 2012 as
it remains confident that the increased consumption patterns in
North America, Brazil, India and Russia will contribute to the
increased demand. The company projects an 8% growth in Asia
(excluding China) this year.
We currently have a long-term Neutral recommendation on Alcoa. The
company, which competes with
Aluminum Corporation of China Limited
(
ACH
) and
RioTinto plc.
(
RIO
) among others, holds a short-term Zacks #3 Rank (Hold).
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis
Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
(SSNLF): ETF Research Reports
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