Howmet Aerospace splits from Arconic

Howmet Aerospace began trading today on the New York Stock Exchange under a separate ticker than its former sister company Arconic, marking the official separation of the two companies.

Arconic and Howmet are both made up of downstream aluminum and titanium assets spun off from primary aluminum smelter Alcoa in 2016. In order to run the vast portfolio of different metal businesses more effectively, the company made a decision to split itself for a second time in early 2019.

Howmet will focus on producing engine parts, fasteners, titanium products and engineered aluminum products for the aerospace industry. More than 70pc of its revenue will come from aerospace.

Arconic will continue supplying the automotive, building and construction, and packaging sectors, in addition to retaining part of its aerospace portfolio.

The spin-off comes at a difficult time for the US aluminum industry, with the Boeing 737 Max production suspension and coronavirus weighing on near term metal demand.

By John Betz