Must-know: Century Aluminum’s background

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Sep. 16 2014, Updated 2:14 p.m. ET

Century Aluminum’s background

Century Aluminum was formed in 1995 by Glencore International. Glencore is one of the world’s largest diversified natural resource companies. It produces and markets over 90 commodities worldwide. Century Aluminum was established as a holding company for Glencore’s aluminum producing assets. Century Aluminum went public in 1996. Glencore is its largest shareholder.

Century Aluminum’s growth

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When it was incorporated, Century had Ravenswood Aluminum Corporation. It also had a 26.67% stake in an aluminum reduction plant at Mt. Holly. Century’s strategic objective was to strengthen its primary aluminum assets. It wanted to improve its competitive position. The company has acquired a lot of strategic assets. The assets have given it geographical diversification. The chart above shows the facilities that Century Aluminum currently operates.

Where Century Aluminum stands today

Century Aluminum has increased its share in Mt. Holly to 49.7%. Along with the Ravenswood plant, Century operates a 244,000 rated plant in Hawesville, a 205,000 tonne plant in Henderson, and a 260,000 tonne plant in Iceland. In addition to these assets, Century’s subsidiaries operate carbon anode facilities in China and the Netherlands.

Century Aluminum’s competitors

In the U.S. market, Century Aluminum (CENX) competes with Alcoa (AA), Kaiser Aluminum Corp. (KALU), and Constellium (CSTM). It’s important to note that the SPDR S&P Metals and Mining ETF (XME) is an alternate way for investors to access the metals sector.

In this series, we’ll present a business overview of Century Aluminum. We’ll compare it with other aluminum companies. We’ll also analyze the outlook for Century’s share. The share has had a strong rally in the past few months. In the next part of the series, we’ll look at Century’s facilities in more detail.

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