Constellium

Constellium

Traded as	NYSE: CSTM and Euronext Paris
Industry	Aluminium production
Founded	2011
Headquarters	Amsterdam, Netherlands
Key people	Jean-Marc Germain [1] Didier Fontaine, CFO[2]
Website	http://www.constellium.com/

Constellium is a global producer of aluminium semi-products with headquarters in Amsterdam, Netherlands. It was created when Rio Tinto sold off Alcan Engineered Products to Apollo Management (51%) and FSI (10%) in 2011.^[3][4] Alcan Engineered Products was the result of various mergers and acquisitions between Pechiney, Alcan and Alusuisse. Constellium is listed on the New York Stock Exchange and Euronext Paris since May 2013.^[5]

It has a board of ten directors and maintain a one-tier board of directors consisting of both executive directors and non-executive directors (each a “director”). Under Dutch law, the board of directors is responsible for the policy and day-to-day management. The non-executive directors supervise and provide guidance to the executive directors.^[6]

Constellium manufactures aluminium rolled products and extruded products based on a large variety of advanced alloys. It has customers in different industries, including mainly aerospace, automotive and packaging sectors.

Constellium reported €5.2 billion in revenues in 2015.^[7]

Company history

1855–1950

Henri Merle et Compagnie was founded in 1855, in France. It originally produced caustic soda from coal, salt, pyrites and limestone, but also began producing aluminium metal in 1860.^[8] The Northern Aluminium Company, Ltd, was founded in Canada in 1902, as a Canadian subsidiary of the Pittsburgh Reduction Company, later called Alcoa. In 1925 it was renamed Aluminium Company of Canada in 1925, and separated from Alcoa in 1928, becoming Aluminium of Canada Ltd, or Alcan.^[9]

1950–2003

Henri Merle et Compagnie was renamed Pechiney in 1950, growing to become one of the world's leading aluminium manufacturers. In 2000, Pechiney announced that it had agreed to join in a merger with Canada's Alcan and Switzerland's Algroup to form a new globally operating aluminium producer, which, with sales worth nearly $30 billion, became a player in the industry, ahead of American company Alcoa.^[10]

However, the merger bumped up against European Commission demands that Alcan sell its interests in a German aluminium producer, Alunorf. Alcan refused to sell, and Pechiney was forced to withdraw from the merger. Alcan and Algroup merged that year, becoming Alcan Inc.^[11][12]

2003–2007

Pechiney became the wholly owned subsidiary of Alcan in 2003, after it was purchased in a deal worth $4.52 billion.^[13] Alcan spun off the majority of pre-Pechiney rolling activities to create an independent company—Novelis Inc.^[14]

2007–2011

The original Rio Tinto company was established in Spain in 1873, and became a worldwide copper producer by the end of the 1880s.^[15] Today, the Rio Tinto Group is a British-Australian, multinational mining and resources group.

2013

Since May 2013, Constellium is listed on the New York Stock Exchange and NYSE Euronext market.^[16]

2014

On October, Constellium announced the acquisition of Wise Metals, a private aluminium sheet producer located in Muscle Shoals, Alabama (U.S.A.).^[17] The transaction diversified Constellium’s global footprint and offerings by increasing the company’s exposure to the North American market. Wise’s growing can sheet business in the U.S. will supplement Constellium’s leading position in Europe and provide stability through long-term contracts with global beverage can customers.^[18]

Activities

Aerospace and Transportation

Constellium's Aerospace and Transportation business unit has around 3,800 employees working at 7 sites in Europe and America. The company deliver aircraft parts and components for the commercial aircraft, military and space sectors. It offers a low density alloy for lighter aircraft named AIRWARE®. This solution is a technology inspiring heightened interest among aerospace companies in using new aluminium solutions rather than composites for high-tech structures in the next generation of aircraft.^[19]

Packaging and Automotive Rolled Products

Constellium designs and produces aluminium products including packaging, automotive, industrial coil and sheet. The unit has four plants and employs over 4,200 people.

Automotive Structures and Industry

Constellium provides structures for European and North American car manufacturers, and emerging markets in the global automotive sector, from six sites in Germany, the U.S. and China. In parallel, Constellium also supplies diverse customized extrusions, including soft and hard alloys and large profiles, through ten sites in Europe. The unit employs over 2,200 people.

Constellium and recycling

Recycling has become very important in the aluminium industry, and 75% of all aluminium produced since 1888 is still in use today. As part of its recycling programme, Constellium is a partner in the EU PAMELA project, where it helped recycle the aluminium parts of a 35-year-old twin-aisle Airbus A300 airplane. 77% of the weight of the plane was aluminium, which is fully recyclable and does not lose its properties when recycled.^[20][21]

Constellium is a founding member of Aluminium Stewardship Initiatives (ASI) to promote responsible practices across the aluminium value chain.^[22] It also joined in 2013 the UN Global Compact.^[23]

Constellium worldwide

Constellium operates 22 production facilities throughout Europe, China and the US.^[24] It employs over 10,000 people.^[25]

Constellium has six main sites that supply its Aerospace and Transportation, Packaging and Automotive Rolled Products, and Automotive Structures and Industry divisions.

In Germany, Constellium's Singen site has cold mills, an integrated hot/cold rolling line and one of the largest extrusion presses in the world.

In France, Constellium has eight sites among which Neuf-Brisach and Issoire. Neuf-Brisach houses a rolling mill, an automotive finishing line and a recycling center. Issoire has one of the world's two leading aerospace plate mills and large-volume recycling, and inaugurated its Airware® casthouse on March 26, 2013.^[26]

The Sierre site in Switzerland has a dedicated precision plate shop for general engineering products. In the USA (Ravenswood), Constellium has an aerospace plate shop with stretcher and wide-coil capabilities.^[27]

References

External links

• Official website
• Rio Tinto Website