Alcoa Sets New Litho Three-Point Pricing Policy.DAVENPORT, Iowa--(BUSINESS WIRE)--Aug. 29, 1997--Confirming its commitment to the lithographic lith·o·graph n. A print produced by lithography. tr.v. lith·o·graphed, lith·o·graph·ing, lith·o·graphs To produce by lithography. sheet market, Alcoa has announced a new three-point pricing policy. Alcoa's lithographic sheet prices now will include the cost of metal, a metal premium and a $0.65 per pound base conversion margin. John Weaver
John Weaver (July 21, 1673 – September 24, 1760) was a dancer and choreographer and is commonly known as the father of English , Alcoa's market manager-Lithographic Products, cited the prolonged erosion of conversion margins in the marketplace as one of the primary motivating factors behind the institution of the new pricing policy. He stated, "Litho conversion margins are currently at a five-year low having declined by 30%, a rate of nearly 7% annually since 1992." Pat Hassey, president, Alcoa Aerospace/Commercial Rolled Products business unit, reinforcing this firm, new policy said, "Litho margins have fallen to levels which no longer support new industry capital investment in this business segment." He added, "During the past decade, Alcoa has invested millions of dollars into its manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. for state-of-the-art equipment to become the highest quality, lowest cost producer of lithographic sheet." Under this new three-point plan, the cost-per-pound will be the cost of metal on the London Metal Exchange London Metal Exchange (LME) A market for trading base metals, where traded options contracts are available against the underlying futures contract. (LME See London Metal Exchange. LME See London Metal Exchange (LME). ), plus a metal premium (based on the U.S. Midwest price differential with the LME), plus a $0.65 per pound base conversion margin. Mr. Weaver stated that Alcoa was taking this action to reverse the company's declining conversion margins and reconfirm re·con·firm tr.v. re·con·firmed, re·con·firm·ing, re·con·firms To confirm again, especially to establish or support more firmly: reconfirmed the reservations. Alcoa's long term commitment to the lithographic market. The new lithographic sheet pricing policy is effective immediately on all new orders and contracts. Current supply contracts will not be affected. CONTACT: Alcoa John C. Weaver, 319/344-3063 |
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