Contracts to build a huge aluminum complex in Saudi Arabia were awarded by Alcoa (NYSE:AA) and Saudi Maaden to a number of companies, which were valued at $274.7 million.
A statement on the Saudi bourse website said U.S. Wagstaff, BWG Bergwerk, Ebner and SMS Siemag were the recipients of the contracts.
Once the complex is completed for the joint venture between Saudi Maaden and Alcoa, it will house an alumina refinery, aluminum smelter, a bauxite mine and a rolling mill.
Alcoa was at $10.48, gaining $0.26, or 2.57 percent as of 12:35 PM EDT.
Showing posts with label Saudi Maaden. Show all posts
Showing posts with label Saudi Maaden. Show all posts
Wednesday, September 1, 2010
Thursday, July 22, 2010
Will Floating Yuan Help Alcoa's (NYSE:AA) Performance?
Alcoa (NYSE:AA) has probably done about as much as they can in cutting costs and preparing for a turnaround when it comes.
Over the last couple of years, aluminum prices have plunged by about 60 percent, and the shares have dropped to just below $11 a share, from the $30 range.
For better cost controls to compete in that regard, Alcoa is developing a bauxite mine in Brazil. They're spending about $1.5 billion on that project. Some of Alcoa's smaller competitors have been nipping away at their business with better prices, contributing to the overall poor performance of the company, the reason for the bauxite strategy.
Other projects are a large aluminum mining project in Saudi Arabia, and a effort to modernize Russian plants to better serve the domestic market there.
Recently they acquired window and door manufacturer Traco, to diversify their product line.
What could help them the most, is the recent decision by China to allow the yuan or renminbi float more against the U.S. dollar. That could generate more demand from China, although they've been cutting back in some areas to battle rising property prices in urban areas and a possible bubble.
The other problem with the renminbi is it is a potential double-edge sword, which could perform reverse and cause more challenges for Alcoa if that is the case.
If it performs as expected, it could be a good boost for Alcoa in the short term.
The bottom line though is still demand and aluminum prices. Until those elements in the equation change, Alcoa is going to continue struggle, along with its shareholders.
Over the last couple of years, aluminum prices have plunged by about 60 percent, and the shares have dropped to just below $11 a share, from the $30 range.
For better cost controls to compete in that regard, Alcoa is developing a bauxite mine in Brazil. They're spending about $1.5 billion on that project. Some of Alcoa's smaller competitors have been nipping away at their business with better prices, contributing to the overall poor performance of the company, the reason for the bauxite strategy.
Other projects are a large aluminum mining project in Saudi Arabia, and a effort to modernize Russian plants to better serve the domestic market there.
Recently they acquired window and door manufacturer Traco, to diversify their product line.
What could help them the most, is the recent decision by China to allow the yuan or renminbi float more against the U.S. dollar. That could generate more demand from China, although they've been cutting back in some areas to battle rising property prices in urban areas and a possible bubble.
The other problem with the renminbi is it is a potential double-edge sword, which could perform reverse and cause more challenges for Alcoa if that is the case.
If it performs as expected, it could be a good boost for Alcoa in the short term.
The bottom line though is still demand and aluminum prices. Until those elements in the equation change, Alcoa is going to continue struggle, along with its shareholders.
Tuesday, June 29, 2010
Alcoa (NYSE:AA) Partner Ma’aden Secures $4.5 Billion in Financing
The board of directors of Saudi state metals producer Ma'aden, approved of $4.5 billion in financing for their joint venture project with Alcoa (NYSE:AA). This should cover the first phase of construction of the project.
About 60 percent of the needed capital for this stage of the project is reflected in the $4.5 billion, with the total cost coming in at $7.5 billion.
Overall costs for the entire project are estimated at $10.8 billion.
Alcoa owns a 25.1 percent stake in the project, while Ma'aden owns the other 74.9 percent.
About 60 percent of the needed capital for this stage of the project is reflected in the $4.5 billion, with the total cost coming in at $7.5 billion.
Overall costs for the entire project are estimated at $10.8 billion.
Alcoa owns a 25.1 percent stake in the project, while Ma'aden owns the other 74.9 percent.
Monday, June 28, 2010
Alcoa (NYSE:AA) Acquires Privately Held Traco
Alcoa (NYSE:AA) announced today it has acquired window and door maker Traco. Terms of the deal weren't disclosed.
Traco was launched in 1943 and serves the commercial construction and building market. It'll join the building and construction systems unit of Alcoa.
Although this is obviously a cyclical business Alcoa has acquired, as it is completely dependent on the equally cyclical construction industry, it is a good move for the long term, as eventually the construction market will rebound, and with other recent moves by Alcoa, once it does, they have a number of businesses ready to flourish.
Other deals Alcoa has made are a recent joint venture with JSC United Shipbuilding Corporation of Russia, beginning construction on the Saudi Maaden joint venture, valued at about $10.8 billion.
They've also cut back on can-sheet volumes, saying it wasn't a profitable business for them.
Although near-term prospects for Alcoa are somewhat bleak, they are doing a lot of good things for when there is a sustainable economic rebound, but that seems to be farther off than originally thought.
Traco was launched in 1943 and serves the commercial construction and building market. It'll join the building and construction systems unit of Alcoa.
Although this is obviously a cyclical business Alcoa has acquired, as it is completely dependent on the equally cyclical construction industry, it is a good move for the long term, as eventually the construction market will rebound, and with other recent moves by Alcoa, once it does, they have a number of businesses ready to flourish.
Other deals Alcoa has made are a recent joint venture with JSC United Shipbuilding Corporation of Russia, beginning construction on the Saudi Maaden joint venture, valued at about $10.8 billion.
They've also cut back on can-sheet volumes, saying it wasn't a profitable business for them.
Although near-term prospects for Alcoa are somewhat bleak, they are doing a lot of good things for when there is a sustainable economic rebound, but that seems to be farther off than originally thought.
Saturday, June 19, 2010
Alcoa (NYSE:AA) Starts Work on Saudi Industrial Complex
Billed ultimately as the largest fully integrated aluminum plant, Alcoa and partner, the Saudi Arabian Mining Co, have begun work on the Madden-Alcoa complex, breaking ground on Saturday.
Alcoa said in a statement, "Groundbreaking has now officially begun to pave the way for construction of the smelter and rolling mill that will serve the packaging and other industries."
Partner Maaden said that the goal is to become the "lowest-cost supplier of primary aluminum, alumina and aluminum products."
Included in the complex will be a alumina refinery, aluminum smelter and rolling mill at Ras Al-Zour, along with a bauxite mine at Ba'aitha.
Operations for the rolling mill and smelter are scheduled to start in 2013, with the mine and refinery projected to go onstream in 2014.
The cost of the joint venture between the two companies is $10 billion.
Alcoa said in a statement, "Groundbreaking has now officially begun to pave the way for construction of the smelter and rolling mill that will serve the packaging and other industries."
Partner Maaden said that the goal is to become the "lowest-cost supplier of primary aluminum, alumina and aluminum products."
Included in the complex will be a alumina refinery, aluminum smelter and rolling mill at Ras Al-Zour, along with a bauxite mine at Ba'aitha.
Operations for the rolling mill and smelter are scheduled to start in 2013, with the mine and refinery projected to go onstream in 2014.
The cost of the joint venture between the two companies is $10 billion.
Sunday, May 2, 2010
Alcoa (NYSE:AA) Awards First Contracts with Saudi Arabian Mining
Alcoa (NYSE:AA) and Saudi Maaden 1211.SE or Saudi Arabian Mining Co, have awarded the first contracts for the $10.8 billion aluminum joint-venture between the two companies to ABB (ABBN.VX), Fluor Corp (NYSE:FLR) and WorleyParsons (ASX:WOR).
The contracts were awarded to the companies on Sunday, and are related to the construction of the Ras Azzour aluminum facility.
Flour Corp landed the contract for overseeing the construction of the rolling mill portion of the plant, ABB was contracted for bringing electric power to the facility, while WorleyParsons and Fluor together were given the supervision, engineering and procurements for the facility's alumina refinery, which is scheduled to be completed by December, 2014.
The contracts were awarded to the companies on Sunday, and are related to the construction of the Ras Azzour aluminum facility.
Flour Corp landed the contract for overseeing the construction of the rolling mill portion of the plant, ABB was contracted for bringing electric power to the facility, while WorleyParsons and Fluor together were given the supervision, engineering and procurements for the facility's alumina refinery, which is scheduled to be completed by December, 2014.
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