Constellium: A leading aluminum fabricator
Constellium N.V. (or Constellium) is a global leader in aluminum fabrication. The company is headquartered in the Netherlands, but has operational headquarters in Paris, Zurich, and New York. Constellium employs more than 8, 200 people across a network of 23 manufacturing sites.
In this series, we’ll present an overview of Constellium (CSTM), so you can learn more about the company and the various factors driving its business. We’ll conduct a comparative analysis of Constellium and other listed aluminum players. We’ll also discuss Constellium’s recent acquisition of Wise Metals. Let’s start with some history.
Must know: Constellium’s beginnings
Constellium was created in 2011, when global mining leader Rio Tinto divested its stake in the engineered products business of Alcan. With this corporate act, two companies were formed—Rio Tinto Alcan and Constellium. The chart above shows the major events in Constellium’s history.
Rio Tinto Alcan conducts primary aluminum operations. This involves bauxite mining, followed by conversion into aluminum. You can read more about the aluminum-making process in Market Realist’s series called A key guide to understanding the aluminum business.
Constellium is engaged in the aluminum fabrication business. Fabricators such as Constellium and Kaiser Aluminum Corp. (KALU) give custom shape and size to primary aluminum. These fabricated products are then bought by end-users.
How to play the aluminum industry
Alongside fabricators Constellium and Kaiser Aluminum is an important integrated player in the aluminum business—Alcoa Inc (AA). Integrated players have both upstream and downstream operations. This means they possess both mining and fabrication operations. You can learn more about how integrated operations benefit Alcoa by reading Must-know: Alcoa is placed better than other aluminum companies. For a more diversified exposure to the metals industry you might consider the SPDR S&P Metals and Mining ETF (XME).
So what are the various business units of Constellium? Let’s find out, next.