PITTSBURGH - Alcoa (NYSE:AA) Corporation (NYSE: AA; ASX: AAI), a leader in the production of bauxite, alumina, and aluminum products, has announced a significant long-term agreement to supply Aluminium Bahrain B.S.C. (Alba) with up to 16.5 million metric tons of smelter grade alumina over a span of 10 years starting from 2026 through 2035. This deal underscores the enduring business relationship between the two companies and positions Alcoa as Alba's largest third-party alumina supplier.
The agreement, primarily involving alumina sourced from Western Australia, is designed to provide Alba with a steady supply, ensuring resource security for one of the world's most prominent aluminum producers. Alcoa's President & CEO, William F. Oplinger, commented on the contract extension, emphasizing the strategic importance of reinforcing Alcoa's global leadership in the alumina market and its commitment to delivering long-term value to its customers.
Ali Al Baqali, CEO of Alba, highlighted the significance of the extended partnership, noting the assurance of a consistent alumina supply and the reinforcement of Alba's key role in the global aluminum industry.
This contract is aligned with Alcoa's strategy to offer long-term supply stability and to manage its alumina position effectively. The agreement is based on the shared values of sustainability and growth between Alcoa and Alba, further cementing their collaborative efforts.
Alcoa, known for its pioneering role in making aluminum an essential material in modern life, continues to lead the industry with its commitment to sustainability and innovation. Similarly, Alba, with its significant production capacity, remains a vital player in the global aluminum market.
The information presented here is based on a press release statement.
InvestingPro Insights
Alcoa's recent long-term agreement with Alba aligns well with its financial position and market performance. According to InvestingPro data, Alcoa's market capitalization stands at $10.78 billion, reflecting its significant presence in the aluminum industry. The company's revenue for the last twelve months as of Q2 2024 was $10.7 billion, with a quarterly revenue growth of 8.27% in Q2 2024. This growth trajectory supports Alcoa's capacity to fulfill large-scale, long-term contracts like the one with Alba.
An InvestingPro Tip highlights that Alcoa's stock price has surged recently, with a 31.18% price return over the past month. This positive momentum could be partly attributed to strategic moves like the Alba agreement, which strengthens Alcoa's market position and future revenue streams.
Another relevant InvestingPro Tip notes that Alcoa is trading near its 52-week high, with the current price at 98.91% of its peak. This suggests strong investor confidence in the company's recent performance and future prospects, including its ability to secure major supply contracts.
For investors seeking a deeper understanding of Alcoa's financial health and market position, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.