Alcoa to implement new operating model

Alcoa Corp., a bauxite, alumina, and aluminum product manufacturer based in Pittsburgh, will implement a new operating model effective Nov. 1.

The new structure is intended to increase connectivity between the plants and leadership, promote operational and commercial excellence, ensure a continued focus on safety, reduce overhead, and position Alcoa for sustainable profitability.

Under the new model, the corporation’s sales, procurement, and other commercial capabilities will be consolidated, and the business unit structure will be eliminated.

The Alcoa Executive Team will be reduced from 12 members to seven who report directly to President and CEO Roy Harvey.

Garret Dixon, executive vice president and president of the Bauxite business unit, and Michael Parker, executive vice president and president of the Alumina unit, will leave the company after the transition.

“These changes to our operating model build on the important progress we’ve made since our 2016 Separation to reduce complexity, drive returns and strengthen the balance sheet, all with the goal of creating a stronger Alcoa,” Harvey said. “Most importantly, this new organizational structure reinforces that our operations are the heart of Alcoa. Among other benefits, it will promote stronger connectivity between our plants and executive leadership and swift decision-making.”

Alcoa plans to announce additional organizational changes at the close of the third quarter.