Alcoa Corporation has announced that it is consolidating its business units to reduce complexity.

Effective immediately, the aluminium smelting, cast products and rolled products businesses, along with the majority of the energy segment assets, will be combined into a new Alcoa Aluminium business unit (BU). As a result, the company’s three business units are Alcoa Bauxite, Alcoa Alumina and Alcoa Aluminum.

“Our strategic goals include reducing complexity, driving returns to create stockholder value and strengthening the balance sheet,” said Roy Harvey, Chief Executive Officer of Alcoa. “Streamlining our number of business units is aligned with those goals, and will increase our operational agility, lower costs, and promote more efficient internal coordination. We will continue to review our company structure and processes to ensure that Alcoa remains resilient through all market cycles.”

Tim Reyes, President of Alcoa Cast Products since 2015, which produces differentiated alumiinum products, has been appointed President of the new Alcoa Aluminum BU (pictured). Since joining former parent company Alcoa Inc. in 1999, Reyes has led several commercial functions, including serving as President of Alcoa Materials Management, which oversaw commodity price risk, metal procurement, and logistics for the company.

“Tim has a strong track record of commercial, operational and strategic success that makes him ideally suited to head the new Aluminium BU,” said Harvey. “At Cast Products, he has enhanced its financial performance, improved safety, productivity, operational costs, and employee engagement. He also led the innovation of differentiated products for end market customers, including a new line of sustainable aluminium products. That customer focus, combined with his operational and commercial background, will be invaluable in his new role.”

Due to this restructuring, Martin Briere, President of Aluminium since 2014 and with Alcoa Inc. from 2007, will be leaving the company. “A strong operational professional with deep technical expertise in smelting, Martin helped to restructure our smelting portfolio during a critical period for Alcoa’s aluminium business,” said Harvey. “With responsibility for the smelting centre of excellence, he also ensured that best practices were implemented across our smelters. He helped us to achieve our global aluminium cost curve goals, we thank him for his many contributions and wish him well in his new endeavours.”

The company’s segment reporting will continue to align with the business units. Beginning with the first quarter of 2017, the company’s operating and reportable segments will both be Bauxite, Alumina and Aluminium. The majority of the former Energy segment will be included in Aluminium. As previously announced, beginning the first quarter of 2017, the business units will use Adjusted EBITDA to measure and report segment profitability.