Aluminum giant Alcoa inc. (AA) is licensing its pre-treatment bonding technology to Chemetall, a division of Rockwood Holdings, Inc. (ROC), in an exclusive global distribution pact. The Alcoa 951 is a breakthrough technology and is the new pre-treatment bonding standard for aluminum sheet, extrusion and casting suppliers across the automotive industry.
Alcoa 951 is a patented, chrome-free pre-treatment that enables production of more durable bonds between an aluminum substrate and a structural adhesive used in an assembly process. Alcoa reported that Alcoa 951 has been proven to be up to nine times more durable than titanium zirconium applications that were more widely used in the automotive industry in the past.
Alcoa 951 technology is significantly beneficial for Alcoa’s customers and is a perfect example of Alcoa Technology Advantage. The technology makes possible wide usage of aluminum throughout the automotive industry and help in making mass-produced aluminum-intensive vehicles possible, thus saving fuel.
As per automotive original equipment manufacturers (OEMs), the use of aluminum in cars is expected to double by 2025 as automakers seek more fuel efficiency by reducing vehicle mass. Currently, aluminum represents the second largest-volume component material in automotive vehicles. Many OEMs are expanding aluminum use from heat exchangers, wheels, drive shafts, engine blocks, hoods and deck lids to develop aluminum intensive vehicles (AIVs) by converting the body in white, or body structure, to aluminum.
By collaborating with Chemetall, Alcoa will be able to commercialize adhesive bonding of aluminum structures in high-volume automotive applications.
Alcoa is the 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 released its first quarter 2013 financial results on Apr 8. The company saw its profit surge roughly 59% in first-quarter 2013, buoyed by strong aluminum demand. It posted a profit of $149 million or 13 cents per share in the quarter, exceeding the profit of $94 million or 9 cents per share recorded a year ago. The results were driven by strong demand across the aerospace and auto markets.
Excluding one-time special items, Alcoa earned $121 million or 11 cents a share in the quarter, beating the Zacks Consensus Estimate by a penny and also coming ahead of $105 million or 10 cents per share posted in the year-ago quarter.
Revenues declined roughly 3% to $5,833 million from $6,006 million in the year-ago quarter and were below the Zacks Consensus Estimate of $5,857 million. Sales were hurt by lower aluminum prices and reduced production in Alcoa’s European primary metals business.
Alcoa currently retains a short-term Zacks Rank #3 (Hold).
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