Similar to Deere & Co., Arconic is continuing its operations in the Quad-Cities after it was labeled essential critical infrastructure by the federal government last week.
An Arconic spokesman confirmed the company meets the guidelines for essential from the Department of Homeland Security and the state of Illinois.
“As we monitor the rapidly changing development, we are taking significant measures at all of our locations to maintain strict hygiene, increase social distancing and enable employees to work remotely when possible,” Arconic said in a statement earlier this week.
Arconic had already restricted travel to certain areas for its workers as COVID-19 has spread across the U.S., and the world, after being labeled a pandemic earlier this month. That is happening as Arconic is heading toward its April 1 separation, when the aluminum arm of the company will retain the Arconic name while the aerospace segment of the business will become Howmet Aerospace.
Arconic Davenport Works will retain its existing name, but the extent that Arconic is directly affected by coronavirus remains to be fully realized. Arconic is a supplier to Boeing, which has asked for a federal bailout to stay afloat.
Andrew Lane, an analyst with Morningstar, recently gave some guidance on Arconic, which is expected to take a hit from COVID-19 in the short-term with its connection to the airline industry.
“Although the key product lines of the global rolled products, or GRP, segment were historically aluminum plate, sheet, and foil, its most attractive growth market is now automotive,” Lane wrote March 19.
That is also backed up by Arconic picking up recent contracts with General Motors on four different types of vehicles. And it is a growth driver moving forward as automobiles use aluminum, instead of steel, “driven by the need for lighter materials due to increasingly stringent fuel-efficiency standards,” Lane wrote.
Current Arconic Inc. stockholders are expected to receive one share of Arconic Corp. stock for every four shares of Arconic Inc. stock held as of March 19. Those new shares will be distributed at 12:01 a.m. April 1, and regular trading of the new stock will begin April 1.
Concerned about COVID-19?
Sign up now to get the most recent coronavirus headlines and other important local and national news sent to your email inbox daily.