MASSENA — Jobs cuts could be part of Arconic’s efforts to compensate for the halted production of the Boeing 737 MAX, but there would be no impact on the local Arconic operations.
Under a planned reorganization that will take place this year, one segment of the company will be focusing on structural parts for airplanes such as the Boeing 737 MAX.
Chief Executive John Plant told the Wall Street Journal that, because production was halted on the Boeing 737 MAX, the company was considering a mix of staff cuts, extended vacations and changes in shift patterns.
Asked Tuesday if the potential cuts could impact the company’s operations in Massena, an Arconic spokesperson said they would not. United Steelworkers Local 420-A President Mark Goodfellow said he also believed Massena would be safe from any potential cuts.
Arconic was formed in 2016 in a split with Alcoa, creating two publicly traded companies — Alcoa Corp. and Arconic. The upstream company, which operates under the Alcoa name, consists of five business units that make up global primary products — bauxite, alumina, aluminum, casting and energy. Arconic, the value-added company, is composed of global rolled products, engineered products and solutions, and transportation and construction solutions.
With the split, Alcoa focused on upstream products, including aluminum, while Arconic focused on engineered products, including the automotive and aerospace segments.
Arconic announced in December that its Rolled Products Corporation, which makes aluminum sheets and plates, had publicly filed a Registration Statement with the U.S. Securities and Exchange Commission in connection with a pending separation into two stand-alone, publicly-traded companies.
Arconic Rolled Products Corporation will be renamed Arconic Corporation, and will focus on serving ground transportation, aerospace, construction and packaging markets.
The business currently comprising Arconic Inc.’s Engineered Products and Forgings segment will remain in the existing company, but will be renamed Howmet Aerospace Inc. upon separation. That is on track to be completed in the second quarter of 2020. It will focus on structural parts for airplanes and defense, as well as forged aluminum wheels for commercial transportation.