Thursday, April 21, 2011

Alcoa (AA), Ma'aden Break Ground in Saudi Arabia

The joint venture between Alcoa (NYSE:AA) and Ma’aden has officially launched as the companies broke ground at its rolling mill in Ras Az Zawr, Saudi Arabia, according to the two firms.

This is just one portion of the $10.8 billion joint venture, which also includes a bauxite mine, an alumina refinery and an aluminum smelter on eastern coast of Saudi Arabia.

Alcoa Chairman and CEO Klaus Kleinfeld in a statement, “Demand for high-quality rolled aluminum products is strong everywhere in the world – especially here in the Middle East. The potential for all elements of this project is immense, and we are making swift progress to capture the opportunities.”

Alcoa has a 25.1 percent stake in the joint venture with the right to grow that to 40 percent if it chooses.

Alcoa was trading at $16.95, gaining $0.32, or 1.89 percent, as of 2:45 PM EDT.

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