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Arconic Reportedly Supplied Flammable Panels to Grenfell Tower, Shares Slide
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On Monday, shares of U.S.-based aluminum provider Arconic Inc. are sliding, down about 6% in morning trading after a Reuters report alleged the company knowingly supplied flammable aluminum panels for use at London’s Grenfell Tower, the public housing structure that recently burned down.
Reuters said there were six emails sent by and to an Arconic sales manager that raised concerns about why the company decided to supply combustible cladding—a material used to wrap around the outside of a building to improve appearance and energy efficiency—despite a public warning that such materials were a fire risk.
Standing at over 200 feet tall, Grenfell Tower was badly damaged in a fire that started on June 14; 79 people perished in the blaze. The fire was caused by a faulty appliance in one of the 120 apartments. According to Detective Superintendent Fiona McCormack, who spoke with Reuters, the building insulation and the cladding panels both failed safety tests carried out after the disaster.
Arconic manufactures three primary types of Reynoband panel: one with a polyethylene (PE) center, one with a fire-retardant center, and another with a non-combustible core. Its PE core panels are suitable up to 10 meters high, while panels with a fire-resistant center are good for up to 30 meters and Arconic’s non-combustible panels should be used for buildings above those heights.
Grenfell Tower is 60 meters high. According to Reuters, Arconic’s U.K. sales manager Deborah French “responded to requests from the companies involved in refurbishing Grenfell Tower on the availability of samples of five different types of Reynobond aluminum-covered panels”; most notably, only Arconic’s flammable PE and fire-retardant versions were available.
So, Arconic told the news organization last Friday that they then provided the PE panels for distribution to Grenfell. "While we publish general usage guidelines, regulations and codes vary by country and need to be determined by the local building code experts," the company said in an emailed statement to Reuters’ inquiry.
Arconic was spun off from aluminum giant Alcoa Corp. (AA - Free Report) in 2016. Its stock has gained over 33% year-to-date.
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Arconic Reportedly Supplied Flammable Panels to Grenfell Tower, Shares Slide
On Monday, shares of U.S.-based aluminum provider Arconic Inc. are sliding, down about 6% in morning trading after a Reuters report alleged the company knowingly supplied flammable aluminum panels for use at London’s Grenfell Tower, the public housing structure that recently burned down.
Reuters said there were six emails sent by and to an Arconic sales manager that raised concerns about why the company decided to supply combustible cladding—a material used to wrap around the outside of a building to improve appearance and energy efficiency—despite a public warning that such materials were a fire risk.
Standing at over 200 feet tall, Grenfell Tower was badly damaged in a fire that started on June 14; 79 people perished in the blaze. The fire was caused by a faulty appliance in one of the 120 apartments. According to Detective Superintendent Fiona McCormack, who spoke with Reuters, the building insulation and the cladding panels both failed safety tests carried out after the disaster.
Arconic manufactures three primary types of Reynoband panel: one with a polyethylene (PE) center, one with a fire-retardant center, and another with a non-combustible core. Its PE core panels are suitable up to 10 meters high, while panels with a fire-resistant center are good for up to 30 meters and Arconic’s non-combustible panels should be used for buildings above those heights.
Grenfell Tower is 60 meters high. According to Reuters, Arconic’s U.K. sales manager Deborah French “responded to requests from the companies involved in refurbishing Grenfell Tower on the availability of samples of five different types of Reynobond aluminum-covered panels”; most notably, only Arconic’s flammable PE and fire-retardant versions were available.
So, Arconic told the news organization last Friday that they then provided the PE panels for distribution to Grenfell. "While we publish general usage guidelines, regulations and codes vary by country and need to be determined by the local building code experts," the company said in an emailed statement to Reuters’ inquiry.
Arconic was spun off from aluminum giant Alcoa Corp. (AA - Free Report) in 2016. Its stock has gained over 33% year-to-date.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>