A spokesperson with Alcoa says that the company will separate into two publicly traded companies.
Alcoa has struggled with the price of raw aluminum as China has flooded the global markets with steel, aluminum, and other industrial metals. The Wall Street Journal is reporting that shares of the company are down 43 percent this year. Shares gained 7.6% though, to $9.76, in pre-market trading. According to the Journal, the company will try to spur its financial growth by splitting into two companies.
According to a press release, one of Alcoa's company will be called the Upstream Company, which will mine Alcoa's aluminum. The Upstream Company, will run under the Alcoa name, until the split happens. The other company, named the Value-Add Company now, will be re-named prior to the closing. The Value-Add Company will turn the aluminum mined into aluminum sheets. The Value Add Company includes the Riverdale plant in the Quad Cities.
The deal is expected to close in the second half of next year.