Alcoa to split into two companies

A year after beginning the process of separating into two independently traded companies, Alcoa will be divided into Alcoa Corp. and Arconic Inc. on Nov. 1.

Arconic will focus on supplying materials for aerospace, automotive and other growing industries, according to a press release, while Alcoa will streamline production on auxite, alumina and aluminum products.

The separation occurs through a proportional distribution of Alcoa's stock in which Alcoa retains 80.1 percent of Alcoa Inc. stock and 19.9 percent is distributed to Arconic. According to a letter written by Klaus Kleinfeld, chairman and chief executive officer of Alcoa Inc., the separation allows each company to better target investments and allocate resources while also customizing employee benefits and recruiting.

Alcoa communications manager Alisha Hipwell was unable to comment on how this restructuring will impact the workforce and if the Lafayette Alcoa plant will become part of Alcoa Corp. or Arconic Inc. More information will be forthcoming as of Nov. 1, according to Hipwell.

Both companies will be based in the United States and publicly traded on the New York Stock Exchange.(Emma Ea Ambrose)