Back to top

Analyst Blog

Aluminum giant Alcoa Inc. (AA - Analyst Report) announced that it has completed the expansion of aluminum lithium alloy production capacity at its Kitts Green plant in the UK to meet the growing demand for aluminum lithium alloys. Alcoa expects revenues from aluminum lithium to rise four-fold over the next six years to nearly $200 million.

The Kitts Green expansion, which is the second phase of the three-part expansion, allows airframers to build fuel efficient and lower-cost airplanes versus composite alternatives. Alcoa stated that the Kitts Green expansion will allow the company to serve the growing demand for its third generation aluminum lithium alloys better. According to Alcoa, the new aluminum lithium alloys provide excellent performance in terms of stiffness, damage tolerance and resistance of corrosion.

At the last Paris Air Show, the third-generation aluminum lithium alloys showed that they have the potential to increase fuel efficiency, reduce inspection intervals, improve passenger comfort and lower capital costs for aerospace manufacturers. Alcoa received a very positive response, where the demand exceeded its production capacity. This encouraged Alcoa to take initiatives for expanding its aluminum lithium operations at three locations across the globe.

Alcoa’s third phase of expansion, which is a $90 million facility adjacent to its Lafayette, Ind. plant, is currently under construction. The expansion is expected to be completed and be online by the end of 2014. Alcoa expects the facility to produce additional 20,000 metric tons of aluminum lithium.

Alcoa, which is among the prominent players in the mining industry along with Aluminum Corporation of China Limited , Atlatsa Resources Corporation (ATL - Snapshot Report) and BHP Billiton Limited (BHP - Analyst Report), is a world leader with respect to production and management of primary aluminum, fabricated aluminum, and alumina as well as the world’s largest miner of bauxite and refiner of alumina.

Alcoa currently retains a short-term Zacks Rank #4 (Sell).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%