Howmet Aerospace Inc. is established now as a separate company from Arconic Inc., a split completed April 1 following more than a year of preparation. Howmet Aerospace consists of the former Arconic Engineered Products and Solutions operations that produce investment-cast engine components and engineered structures, fastening systems, and forged aluminum wheels.
For 2019, the businesses comprising the Pittsburgh-based firm generated more than $7 billion in revenue, with more than 70% of Howmet’s revenue derived from the aerospace market.
“Howmet Aerospace, an iconic and storied brand in the aerospace industry, today launches as a standalone company,” stated John C Plant, co-CEO and formerly CEO of Arconic Inc. “With strong market positions, differentiated technology and collaborative relationships across our customer base, the company is well-positioned to benefit from a strong and growing aerospace market."
The Howmet name has long been associated with Arconic’s aerospace investment casting and hot isostatic pressing operations headquartered in Whitehall, MI, a business that Alcoa acquired in 2000.
Arconic was formed in 2016 in a similar break-up of Alcoa Inc. That group’s mining, refining, and primary aluminum production remained in one portfolio (the current Alcoa), and the rolled products, engineered products, transportation, and construction product lines formed Arconic Inc.
Under pressure from shareholders to improve earnings, and having rejected a privatization proposal from Apollo Global Management, Arconic Inc. directors decided in February 2019 to split the business and to implement a cost-cutting initiative.
Plant is also serving as executive chairman of the board. Co-CEO Tolga Oal previously served as president of Arconic Engineered Structures division.
“Today is the culmination of a year of focus and hard work by our team to establish a strong and competitive company," Plant continued. "We will build on that work and continue to serve our customers with precision-engineered and highly innovative products.”