Aluminum producer Alcoa Corp (AA.N) named a new head for its aluminum business on Thursday and said it would consolidate its business units into three divisions from six, to increase efficiency and cut costs.
The three units will focus on aluminum, alumina and bauxite.
The aluminum smelting, cast products and rolled products businesses, along with the majority of its energy business assets, will be combined into the new aluminum unit, Alcoa said.
The company said Tim Reyes, who has since 2015 been president of Alcoa cast products - a unit that produces differentiated aluminum products - will head the new aluminum business.
Martin Briere, who has been president of the aluminum unit focused on smelting since 2014, will leave the company, Alcoa said.
Alcoa last year split into two entities. One company kept the Alcoa name and focuses on the traditional smelting business. The other, Arconic Inc (ARNC.N), specializes in higher-end aluminum and titanium alloys for the automotive, aerospace and construction industries.
Alcoa expects a 4 percent growth in global aluminum demand this year, even as the market remains modestly over supplied, while bauxite and alumina markets are expected to be relatively balanced.
The company's shares were largely unchanged at $37.93 in morning trade on the New York Stock Exchange.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Sai Sachin Ravikumar)