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Industrial Products and Other
14% $4.2 billion
Alcoa segments that sell products to this market: Flat-Rolled Products,
Engineered Solutions, Extruded and End Products
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Alcoa’s revenues from this market include sales of aluminum sheet,
plate and extrusions to distributors, products and services for power
generation, and products for the oil and gas industry.
Industrial gas turbine demand remained strong. Orders for heavy-duty
gas turbines were up significantly in 2007 driven by the Middle East,
Asia, and Europe. Increasing gas turbine utilization rates positively
affected demand for spare parts. Environmental and lead-time concerns
around competing types of generation continued to make gas
turbine-fired power plants an attractive option. High levels of activity
in the oil and natural gas market increased demand for the sizes of
turbines used in that industry. These trends are expected to continue
in 2008.
The oil and gas industry continues to be fueled by an ever-increasing
global demand for hydrocarbon products and, as such, is challenged
to economically find and develop new reserves. To meet demand, the
industry has progressively moved into ever more difficult operating
environments, including ultra-deepwater and extended reach drilling.
The operating conditions in these applications have forced the industry
to look for ultra-lightweight technologies capable of significantly
reducing weight while still operating in extreme conditions. Alcoa’s
long and successful history of providing similar technology solutions
for the aerospace industry has uniquely positioned it to meet and
exceed the expectations of the oil and gas industry.
In support of this strategic market, earlier this year Alcoa announced
the formation of Alcoa Oil and Gas, which is focused on developing
and providing lightweight drilling solutions including such things
as ultralight drill pipe and landing strings, to name just a few. Along
with its portfolio of ultralight products, Alcoa Oil and Gas is also
providing the industry with a variety of forged aluminum, titanium,
steel, stainless steel, and nickel-based products that benefit from
the same engineering and design expertise that Alcoa has applied
within other industries.
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