) announced that it will merge Evermore Recycling LLC, its used
beverage can (UBC) procurement group, with its aluminum scrap
purchasing group to create a new single group called Alcoa
Evermore Recycling recycles aluminum in the packaging market and
the aluminum scrap purchasing group recycles aluminum used in
other markets such as aerospace and automotive. Both these groups
recycled about 1.4 billion pounds of external aluminum in 2012.
Alcoa is taking the step to combine the two groups to further
increase the amount of aluminum that is converted back into new
Michael Boyle, Director of Metal Management at Alcoa, will
oversee the combined group. Boyle stated that by combining the
two groups Alcoa will be able to capitalize on the strengths of
both the groups and interface the market as a single entity. The
new organization will work upon the huge number of closed-loop
recycling programs that it has with its customers and will also
implement supply chain efforts with suppliers to increase
Last month Alcoa also entered into a closed-loop recycling
) that is expected to increase the reuse of internal aluminum
aerospace alloys from the production of Boeing airplanes. About 8
million pounds of high-value 2XXX and 7XXX series aluminum alloys
are expected to be recycled annually. Alcoa has long been into
recycling and its Tennessee Operations contain roughly 90% total
Recently, Alcoa also broke ground on a $275 million expansion of
its Tennessee operations. This is Alcoa's second U.S. automotive
expansion to meet increasing demand for light, durable and
recyclable aluminum sheet for auto production.
Alcoa, a prominent player in the mining industry along with
Aluminum Corporation of China Limited
BHP Billiton Limited
), is a world leader in production and management of primary
aluminum, fabricated aluminum, and alumina. The company is also
the world's largest miner of bauxite and refiner of alumina.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
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