Fastener manufacturer Alcoa, recently announced that it will be naming one of its spinoff companies Arconic. The New York Based company is planning on splitting into 2 companies during the second half or 2016. The decision to split the company in 2 was announced in September of 2015 and was made to help increase the company’s cumulative stock-market value. Arconic, as the new company will be called, will focus on making multi-alloy products for the automotive and aerospace industries. Tuesday announced the name of its new spinoff: Arconic.
Chief Executive Klaus Kleinfeld has high hopes that the combined value of both companies would surpass the value of the integrated one, mainly due to the fact that the value of the new company will no longer be weighed down by tepid aluminum markets.
Having a new name and new logos for both companies may not be able to solve all of the issues Alcoa and Arconic face. Issues such as the high amounts of competition the company faces from Chinese companies and the dwindling price of aluminum. Nonetheless, according to Andrew Lane of Morningstar, Inc Acronic has been setup by Parent Alcoa for profitable growth.
Arconic’s logo has been designed and will be a teal eight sided polygon that has a shape similar to that of Alcoa’s. Kleinfeld plans on relinquishing his position as chief executive at Alcoa to take over the reins at Arconic and according to him the new brand “echoes our 127-year history of invention and reinvention.”