By JOHN DENNISJOHN DENNISTONISIARIAN EDITOR – JULY 06, 2020A US Navy chief said the Navy will buy up half of the company’s assets to help bolster its aluminium foil business amid mounting concern over a looming collapse in demand.
The decision by the Navy’s chief of naval operations to purchase 50% stake in aluminium foil manufacturing company, Alcoa, comes a day after Alcoas chief executive officer, John B. Foyt, told investors that the company could close as early as next week.
“We are very confident that we can be able to complete this acquisition,” Foyd said on a conference call with analysts and investors.
Foyd told investors he was confident the Navy could continue to sell aluminium foil to U.S. customers, despite the threat from a looming aluminium foil shortage.
“Alcoas is not going to close, and I think the reality is that the world is going to need aluminium foil in a very short time period,” Froyd said.
The company is known for its aluminum foil products, but it has been plagued by problems with its products.
Last year, AlCoas announced it would close a plant in India, saying it had been forced to lay off nearly 500 people.