Alcoa (NYSE:AA) Signs Deal With New York State

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Alcoa (NYSE:AA) announced a dividend of $6.71875 per share on Stock B stock which was outstanding by 5.375% and the same would be paid to the stakeholders on January 1, 2016. The company also reported that it had signed a liaison with New York State for three and a half years. Under the deal, the company would be increasing the efficiency of the Massena West smelter unit. The facility had been put to limited use before this agreement that provides a living to hundreds of people in the North Country.

New York State Support

The company’s Chairman and Chief Executive Officer Klaus Kleinfeld informed that the Massena facility of the company was running only because of the support rendered by Senator Schumer and Governor Cuomo. The deal will be a step forward in helping grow the upstream business of the company. The incentive package of the state would support over 600 jobs at the facility that has a capacity of smelting 130,000 metric tons.

Company Strategy

The strategy of the company in establishing itself as a global leader in production of cost-effective alumina and aluminum is helping improve the upstream business and it is moving towards the goal of a cash cost curve on global aluminum at 38% in 2016. The restructuring expenses in the 4Q15 will be $130 million and $150 million after-tax that is $0.11 per share and out of this, non-cash expense would be 40 per cent.

Alcoa (NYSE:AA) is among the world’s leading manufacturers in lightweight metals technology and works on providing solutions for low-cost metals globally. According to reports, the company works on technologies that help in improving automotive, commercial, air and space transportation and provide better industrial and consumer electronics deliverables. Smart buildings, food and beverage packing, defense vehicles, oil and gas drilling and power generation, are some of the businesses that Alcoa helps support through its innovative product line.

With a legacy of over 125 years in the aluminum industry, Alcoa has on board over 60,000 staff in 30 countries with manufacture of products in titanium, nickel, aluminum, bauxite and other related products. Alcoa has a positive outlook for the 2016 fiscal.

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