Alcoa Inc. (AA), the world’s leading producer of aluminum has acquired a minority stake in Electronic Recyclers International (ERI), the largest U.S. recycler of electronics waste. Neither of the two companies disclosed the extent of the stake acquired in ERI.
The partnership is a part of Alcoa’s efforts to boost the recycling of consumer electronics. Through this venture Alcoa intends to enter the re cycling market. On the other hand, ERI will also get requisite funds to expand its US footprint.
Consumer division utilizes a lot of aluminum, primarily because the metal is very durable and provides protection and resistance. Alcoa projects that there will be an increase in the content of aluminum used in the Consumer electronics division. The company expects that aluminum content in laptops alone would increase to 30 percent by 2013, from 2010.
Alcoa’s Vice President and Chief Sustainability Officer Kevin Anton will become a director of ERI. His domain knowledge of more than 30 years in the metals and mining industry and his finance background will enhance the capacity and expertise of ERI.
Alcoa had partnered with ERI in 2010 to develop the free Aluminate recycling application for iPhone, as part of the company’s goal of increasing the recycling rate of aluminum cans in the U.S. to 75 percent by the year 2015.
Alcoa also announced that it will become an enterprise member of the e-Stewards Certification program of the Basel Action Network (BAN), a Seattle-based group dedicated to ending the impact of trade in toxic chemicals and products on developing countries as part of its ongoing commitment to the environment and sustainability. ERI was a founding member of BAN’s e-Stewards Certification program.
Alcoa, a Pennsylvania-based corporation, is among the world’s leading producers of primary and fabricated aluminum and alumina. It involves the technology of mining, refining, smelting, fabricating and recycling of aluminum.
Alcoa posted better-than-expected year-over-year results in the fourth quarter of 2010 with net earnings and revenues exceeding the Zacks Consensus Estimates. The company continues to benefit from its cost saving efforts. We believe the cost cuts will make Alcoa more competitive when markets fully recover. The annual global consumption of aluminum products, both upstream and downstream, is expected to double over the next 15 years.
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