Kaiser Aluminum Corporation engages in the production of semi-fabricated specialty aluminum products. Products The company produces rolled, extruded and drawn aluminum products used principally for aerospace and defense, automotive, consumer durables, electronics, electrical and machinery and equipment applications. The company focuses on products that serve four end market applications, such as aerospace and high strength products (Aero/HS products), extrusions for automotive applications (Automotive Extrusions), general engineering products (GE products), and other industrial products (Other products). The company has long-standing relationships with its customers, which consist primarily of blue-chip companies, including major aerospace companies, automotive suppliers, and metal service centers. Aero/HS Products The company’s Aero/HS products include heat treat plate and sheet, as well as cold finish rod and bar, seamless drawn tube, hard alloy extrusions and billet that are manufactured to demanding specifications for the aerospace and defense industries worldwide. The company’s Aero/HS products are used for various end uses. The company makes aluminum plate, sheet, extruded shapes and tube for aerospace applications; and manufactures various specialized rod and bar products that are incorporated in various applications. In monolithic construction, aluminum plate is machined to form the desired part from a single piece of metal (as opposed to creating parts using aluminum sheet, extrusions or forgings that are affixed to one another using rivets, bolts or welds). Military applications for heat treat plate and sheet include aircraft frames and skins. Automotive Extrusions Automotive products consist of extruded aluminum products for various North American automotive applications. The variety of extruded products that the company supplies to the automotive industry include extruded products for structural components, bumper systems, anti-lock braking systems, and drawn tube for drive shafts. For some Automotive Extrusions, the company performs limited fabrication, including sawing and cutting to length. GE Products Majority of the company’s GE products are standard catalog items sold to large metal service centers. Its GE products consist primarily of 6000-series alloy rod, bar, tube, wire, sheet, plate and standard extrusions. The 6000-series alloy is an extrudable medium-strength alloy that is heat treatable. The company’s GE products have a range of uses and applications, majority of which involve further fabrication for various transportation and other industrial end market applications where machining of plate, rod, and bar is intensive. The company’s GE products are used in the improvement and production of military vehicles, ordnances, semiconductor manufacturing cells, various electronic devices, after-market motor sport parts, and tooling plates. The company’s rod and bar products are manufactured into rivets, nails, screws, bolts and parts for machinery and equipment. Other Products Other products consist of extruded, drawn and cast billet aluminum products for various North American industrial end uses. Sales, Marketing, and Distribution Aero/HS Products: Approximately 51% of the company’s Aero/HS product shipments are sold to metal service centers with the remainder sold directly to end market application customers. Sales are made primarily under contracts (with terms spanning from 1 year to 10 years), as well as on an order-by-order basis. The company serves this market with a North American sales force focused on Aero/HS and GE products and direct sales representatives in Western Europe and China. Automotive Extrusions: The company’s Automotive Extrusions are sold primarily to first tier automotive suppliers under multi-year sales agreements. Almost all sales of Automotive Extrusions occur through direct channels using a North American direct sales force that works with the company’s technical sales organization. GE Products: A majority of the company’s GE products are sold to large metal service centers in North America. The company services this market with a North American sales force focused on GE and Aero/HS products. Other Products: Other products are primarily sold directly to industrial end users using a North American direct sales force. Customers In 2014, the company had approximately 800 customers. Its two major customers, Reliance Steel & Aluminum Co. and The Boeing Company, accounted for approximately 22% and 10%, respectively, of the company’s net sales in 2014. Competition The company’s primary competitors in the global heat treated flat-rolled products are Alcoa Inc., Constellium N.V., and Aleris Corporation. In the extrusion/drawn products, the company competes with various regional participants, as well as larger companies with a national presence, such as Sapa AS and Alcoa Inc. History Kaiser Aluminum Corporation was founded in 1946.
kaiser aluminum corp (KALU:NASDAQ GS)
27422 Portola Parkway
Foothill Ranch, CA 92610
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