CONSTELLIUM SE
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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Item 1. Business
We are a global leader in the design and manufacture of a broad range of innovative rolled and extruded aluminum
products, serving a wide range of blue-chip customers primarily in the aerospace, packaging, automotive, commercial
transportation, general industrial and defense end-markets. Our business model is to add value by converting aluminum into
semi-fabricated and in some instances fully-fabricated alloyed aluminum products which meet stringent and performance
critical requirements from our customers. Our product portfolio generally commands higher margins as compared to less
differentiated, more commoditized aluminum products. Our business model aims to pass through aluminum price exposure by
pricing our products to include the cost of the metal purchased and hedging any remaining exposure to achieve aluminum price
neutrality.
As of December 31, 2024, we operated 25 manufacturing facilities,3 R&D centers, and 3 administrative centers. Our
portfolio of flexible, integrated and strategically located facilities is well invested, among the most technologically advanced in
the industry and highly valuable. We believe that we are a critical supplier to many of our customers given our world-class
technological and R&D capabilities, our intellectual property and more than 50 years of manufacturing experience. Many of our
products are technically advanced, requiring long and complex qualification processes as well as the need for close customer
collaborations including joint product development. We believe that our strategic footprint, differentiated capabilities,
technically advanced product portfolio, integrated approach and long-standing customer relationship are difficult to replicate
and support our competitive position.
Our Strategy
Our mission is to meet customers’ and society’s need for lightweight, strong and sustainable aluminum products while
generating attractive returns for our shareholders. We aim to achieve our mission by expanding our leading position as an
innovative, go-to-supplier of technologically advanced fabricated aluminum solutions. We are committed to building a safe and
sustainable company and becoming the most exciting company in our industry. To achieve these objectives, we have built a
business strategy centered around six core principles:
(i) Focus on High Value-added and Responsible Products
We are primarily focused on our strategic end-markets including aerospace, packaging and automotive, in which we have
leading positions and long-standing relationships with many of the main manufacturers. These are also markets where we
believe that we can differentiate ourselves through our high value-added and specialty products which make up the majority of
our product portfolio. Given the inherent characteristics of aluminum of being lightweight, strong, durable and infinitely
recyclable, we have made substantial investments to enhance our manufacturing and recycling capabilities as well as product
offerings which benefit our customers in many areas such as weight reduction, higher strength and better formability, and
contribute to their objective of reducing carbon emissions.
(ii) Increase Customer Connectivity
We regard our relationships with our customers as partnerships in which we work closely together to develop customized
solutions which are technically advanced. We aim to deepen our ties with our customers by consistently providing best-in-class
products and services and joint product development projects. In addition, supply chain integration allows us to better anticipate
customer demands and more efficiently manage our working capital needs. We also seek to strengthen customer connectivity
through customer technical support and closed-loop scrap recycling programs.
(iii) Optimize Margins and Asset Utilization Through Rigorous Product Portfolio Management
We are highly focused on maximizing the throughput of our facilities and optimizing our product mix to increase the
profitability per machine hour. We believe there are significant opportunities to do so through rigorous focus on the products
we choose to make, investments in asset integrity, and continuous improvements in our operations such as debottlenecking and
optimizing equipment uptime, speed and recovery. Finally, we complement these efforts by increasing recycling to strengthen
our margins, reduce our dependence on external slab and billet suppliers and expand our sustainable product offering.
(iv) Strictly Control Cost, Continuously Improve and Manage Resources Responsibly
We are committed to reducing our operating costs and improving our operations by implementing manufacturing
excellence, metal management and other cost improvement initiatives. These include standardizing manufacturing processes,
improving recovery thereby reducing internal scrap generation, minimizing energy and water usage, maximizing external scrap
input and efficiently managing other resources used by the Company, including capital.
(v) Manage Capital Through a Disciplined Approach and Increase Financial Flexibility
We have invested capital in a number of attractive growth opportunities to advance our production capabilities, product
offerings and sustainability profile. We are highly focused on being selective on growth projects and realizing attractive returns
on the capital we invest. In addition, we are highly focused on increasing our financial flexibility through earnings growth and
free cash flow conversion, which is critical to achieving our objectives of investing in our operations and our people,
maintaining a conservative capital structure and returning capital to our shareholders.
(vi) Commit to Our People and Communities
We believe our people are among the best in the industry, which is a competitive strength that allows us to be a leader in
our industry. We will continue to provide trainings to our employees, invest in their skills and competencies, and promote a safe
and inclusive environment where everyone is valued, contributes, and thrives. We also strive to be socially responsible
operators in our communities.
Our Operating Segments
Our business is organized into three operating segments:
(i) Aerospace & Transportation Operating Segment
Our Aerospace & Transportation ("A&T") operating segment offers a wide range of technically advanced aluminum
products including plate, sheet and extrusions to blue-chip customers in the global aerospace, space, commercial transportation,
general industrial and defense sectors. Many of the products are mission critical, which benefit from our world-class R&D and
manufacturing capabilities and unique solutions.
We are a global leader in the supply of advanced aluminum alloy plates, sheets and extrusions to the aerospace and space
industries. The aerospace and space industries require high levels of R&D investment and advanced technological capabilities,
and therefore tend to command higher margins compared to more commoditized products. We work in close collaboration with
our customers to develop highly engineered solutions to fulfill their specific requirements. For example, we have developed
Airware®, a lightweight specialty aluminum-lithium alloy, for our aerospace and space customers to address increasing demand
for lighter and more fuel-efficient aircraft and spacecraft. Additionally, aerospace and space products are generally subject to
long qualification periods. Our facilities have been qualified by external certification organizations including the National
Aerospace and Defense Contractors Accreditation Program ("NADCAP") and our products have been qualified by our
customers. We are also a leading supplier to the commercial transportation, general industrial and defense end-markets in North
America and Europe. Our product portfolio in these segments include both specialty aluminum plates and sheets as well as
standard products. Our A&T customers are diverse and range from Airbus, Boeing and Lockheed Martin in commercial and
military aerospace, to Ryerson, ThyssenKrupp, General Dynamics and KNDS in commercial transportation, general industrial
and defense, to multiple players in space. The majority of our contracts with our largest aerospace customers are multi-year
contracts, which provides visibility on volumes and profitability. Our contracts in commercial transportation and defense are
typically between one to three years. The contract length in general industrial tends to be one year or less.
(ii) Packaging & Automotive Rolled Products Operating Segment
Our Packaging & Automotive Rolled Products ("P&ARP") segment includes the production and development of
customized rolled aluminum sheet products. We supply the packaging market with canstock and closure stock for the beverage
and food industry, as well as foilstock for the flexible packaging market. In addition, we supply the automotive market with
technically advanced products such as Auto Body Sheet ("ABS"), heat exchanger materials and battery foil products.
We are a leading supplier of canstock in North America and Europe and a leading supplier of closure stock globally. We
are also a major supplier of ABS in both North America and Europe, and heat exchangers and battery foil in Europe. These
products are subject to the exacting requirements and qualification processes of our customers which we believe provide us
with a competitive advantage. We have a diverse customer base, consisting of many of the world’s largest beverage companies,
can makers, food and specialty packaging producers, automotive original equipment manufacturers ("OEMs") and general
industrial companies. Our packaging customers include AB InBev, Amcor Ltd., Ardagh Metal Packaging S.A., Ball
Corporation, Can-Pack S.A., Crown Holdings, Inc., and Molson Coors Beverage Company USA LL and our automotive
customers include BMW AG, Ford Motor Company, Mercedes-Benz Group AG, Stellantis, Toyota Motor Corporation and
Volkswagen Group. Our contracts in packaging and automotive are typically multi-year.
(iii) Automotive Structures & Industry Operating Segment
Our Automotive Structures & Industry ("AS&I") operating segment produces (i) technologically advanced structural
solutions for the automotive industry including crash management systems, body structures, side impact beams and battery
enclosure components, (ii) soft and hard alloy extrusions for automotive, transportation, general industrial applications, and (iii)
large profiles for rail and general industrial applications. We complement our products with a comprehensive offering of
downstream technology and services, which include pre-machining, surface treatment, R&D and technical support services.
We are a leading supplier of aluminum extruded products to automotive customers in North America and Europe. Due to
the unique combination of strength and weight, aluminum extruded structural solutions are increasingly favored by our
automotive customers given priorities on safety, lightweighting and sustainability. By leveraging our unique R&D partnership
with the Brunel University in the United Kingdom, we have developed proprietary alloys and manufacturing technology which
have enabled us to deliver high-quality and cost-effective products to our automotive customers. We believe that we are one of
the largest providers of aluminum automotive crash management systems globally, and our customers include some of the
largest North American and European car manufacturers, such as BMW AG, Ford Motor Company, Mercedes-Benz Group AG,
Stellantis, Toyota Motor Corporation and Volkswagen Group. Our automotive structures contracts are typically multi-year,
which usually represents the lifetime of a model. We also serve a broad range of customers across a number of industries
outside of automotive including rail, other transportation and general industrial markets in Europe. The non-automotive
businesses typically have contracts which are shorter-term in nature.
Our Industry
Aluminum Sector Value Chain
Aluminum has a number of unique physical characteristics. Aluminum is infinitely recyclable and recycling aluminum
requires only approximately 5% of the energy required to produce primary aluminum. Aluminum’s corrosion resistance and its
malleability also allow it to be easily cast, shaped, machined and used across a variety of applications. In addition, aluminum is
lightweight, with one-third the density of steel but offering the same stiffness, which result in products offering strength and
stability particularly when alloyed with other metals. All of these capabilities make aluminum a viable and adaptable solution
for a growing number of manufacturing and consumption needs.
The global aluminum industry consists of (i) mining companies that produce bauxite, the ore from which aluminum is
ultimately derived, (ii) primary aluminum producers that refine bauxite into alumina and smelt alumina into aluminum, (iii)
aluminum semi-fabricated products manufacturers, including aluminum casters, extruders and rollers, (iv) aluminum recyclers
and remelters, and (v) integrated companies that are present across multiple stages of the aluminum production chain.
Constellium’s Position in the Aluminum Sector Value Chain
Aluminum value chain
Our business is primarily focused on adding value through rolling and extruding aluminum into semi-fabricated and in
some instances fully-fabricated alloyed aluminum products, for a variety of end-markets. We recycle aluminum, both for our
own use and as a service to our customers. We do not participate in upstream activities such as mining, refining bauxite or
smelting alumina into aluminum. The aluminum rolled products industry is characterized by economies of scale as significant
capital investments are required to achieve and maintain technological capabilities and demanding customer qualification
standards. The aluminum extruded products industry also requires significant capital investments in order to achieve and
maintain technological capabilities and meet demanding customer qualification standards, but is comparatively more
fragmented and generally more regional. The supply of aluminum rolled and extruded products has historically been affected by
production capacity, alternative technology substitution and trade flows between regions. The demand for these products has
historically been affected by economic growth, substitution trends, cyclicality and seasonality, etc.
There are two main sources of metal input for our rolled or extruded products:
Slabs or billets we cast from a combination of primary and recycled aluminum. The primary aluminum is typically in
the form of standard ingots. The recycled aluminum comes either from scrap from fabrication processes, or from
recycled end products in their end-of-life phase, such as used beverage cans.
Slabs or billets purchased from smelters or metal trading companies.
The cost of primary aluminum is based on the London Metal Exchange ("LME") quoted price plus a regional premium.
Recycled aluminum is also tied to LME pricing (typically sold at a discount to LME price and regional premium). The rolled
and extruded aluminum product prices for our products are based generally on the cost of aluminum purchased plus a
conversion margin (i.e., the margin to convert the aluminum into a semi-finished product). As a result, the price of aluminum is
not a significant driver of our financial performance because we typically pass through the cost of aluminum either to our
customers and / or the financial market. Instead, the financial performance of producers of rolled and extruded aluminum
products, such as Constellium, is driven by the dynamics in the end-markets that they serve, their relative positioning in those
markets and the efficiency of their industrial operations.
Overview of Aluminum Rolled Products, Extrusions and Automotive Structures
Our aluminum rolling process consists of passing alloyed aluminum slabs through a hot-rolling mill and then transferring it
to a cold-rolling mill, which gradually reduces the thickness of the metal down to approximately 6 mm for plates and to
approximately 0.2-6 mm for sheet. Aluminum rolled products, including sheet, plate and foil, are semi-fabricated products
which are used by our customers for their manufacturing of finished goods ranging from packaging such as beverage cans to
transportation applications such as automotive body panels to fuselage sheet to aircraft wing parts. According to CRU
International Limited ("CRU"), the compound annual growth rate ("CAGR") for aluminum rolled products between 2024 and
2029 is expected to be 4.0%.
Aluminum extrusion is a technique used to transform alloyed aluminum billets into semi-fabricated products with a defined
cross-sectional profile for a wide range of uses. In the extrusion process, a heated aluminum billet is forced through a die and
the extruded products can be manufactured in many sizes and in almost any shape. Today, aluminum extrusions are used for a
wide range of purposes, including building, general industrial and transportation where virtually every type of vehicle contains
aluminum extrusions, including planes, boats, bicycles, trains and cars. In our automotive structures business, automotive
extruded profiles are further machined and processed into a system of fully-fabricated automotive structural components. Due
to the unique combination of strength and weight, aluminum extruded products are increasingly favored by our automotive
customers.
Our Key End-markets
Aerospace
Demand for aerospace plate and sheet is primarily driven by the build rate of commercial aircraft, which we believe will be
supported for the foreseeable future by (i) the increasing demand for air travel in an environment of economic growth, (ii) the
increased affordability and accessibility of air travel to people from diverse socio-economic backgrounds, (iii) the expansion of
airline networks and the opening of new routes to previously underserved destinations and (iv) the necessary replacement of
aging fleets by airline operators, particularly in the United States and Western Europe by more fuel-efficient aircraft. Over the
longer term the fundamentals driving aerospace demand growth remain intact. Between 2024 and 2043, Airbus predicts over
42,000 new aircraft across all categories of large commercial aircraft with 36% of sales of new airplanes to Europe and North
America, 46% of sales of new airplanes to Asia Pacific and the remaining 18% to the Middle East, Latin America and Africa.
According to CRU, demand for the aerospace aluminum rolled products markets in North America and Europe is expected to
grow by 8.2% per annum from 2024 to 2029.
Packaging
The packaging industry has historically been relatively resilient during periods of economic downturn and has had
relatively limited exposure to economic cycles and periods of financial instability. Aluminum is a preferred material for
beverage packaging as it allows drinks to chill faster, can be stacked for transportation and stored more densely than competing
formats (such as glass bottles), is highly formable for unique or differentiated branding, and offers significant environmental
advantage of convenient, cost- and energy-efficient recycling. As a result of these benefits, aluminum is increasingly the
beverage packaging container of choice and is displacing tinplate, glass and plastics as the preferred packaging material
including in the growing specialty product categories. According to CRU, demand for the aluminum canstock market in North
America and Europe is expected to grow by 3.1% and 4.8% per annum between 2024 and 2029, respectively.
Automotive
We believe that the main drivers of automotive sales include overall economic growth, credit availability, level of
financing rates, vehicle prices and consumer confidence. Within the automotive sector, the demand for aluminum rolled and
extruded products tends to increase faster than the underlying demand for light vehicles due to aluminum’s high strength-to-
weight ratio in comparison to steel and a need for increased energy efficiency. Regulations in the U.S. and EU relating to
reductions in carbon emissions are expected continue to result in the increased use of aluminum to "lightweight" traditional
vehicles to facilitate better fuel economy, improve emissions performance and enhance vehicle safety. In addition, increased
electric vehicle penetration should drive increased demand for aluminum rolled and extruded products due to the greater
importance of lightweighting to maximize range, better thermal conductivity for battery boxes and superior energy absorption,
as compared to steel. As a result, automotive OEMs are seeking additional applications where aluminum can be used in place of
steel and an increased number of cars are being manufactured with aluminum panels and crash management systems. Our
automotive rolled, extruded and structural products are predominantly used in premium models, light trucks and sport utility
vehicles manufactured by North American and European OEMs. According to industry research, light vehicle production is
expected to grow in North America and Europe by approximately 1.3% and 2.3% per annum from 2024 to 2029, respectively.
Comparatively, CRU estimates that the consumption of ABS in North America and Europe is expected to grow by 6.1% and
7.8% per annum between 2024 and 2029, respectively.
Our Business Operations
Our business model is to add value by converting aluminum into semi-fabricated and in some instances fully-fabricated
products. It is our policy not to speculate on metal price movements.
Managing Our Metal Price Exposure
For all contracts, we seek to minimize the impact of aluminum price fluctuations in order to protect our cash flows against
variations in the LME price, regional and other premiums for aluminum that we buy and sell, with the following methods:
In cases where we are able to align the price and quantity of physical aluminum purchases with that of physical
aluminum sales to our customers, we enter into back-to-back arrangements with our customers.
When we are unable to align the price and quantity of physical aluminum purchases with that of physical aluminum
sales to our customers, we enter into derivative financial instruments to pass through the exposure to financial
institutions.
For a small portion of our volumes, the aluminum we process is owned by our customers and we bear no aluminum
price risk.
Sales and Marketing
Our sales force is based in the U.S., Europe (France, Germany, Czech Republic, United Kingdom and Switzerland) and
Asia (South Korea and China). We primarily serve our customers directly and in some cases through distributors.
Raw Materials and Supplies
A majority of our rolling slab and extrusion billet needs is produced internally at our cast-houses. The remaining external
rolling slab and extrusion billet needs are secured through long-term contracts with several upstream suppliers. All of our top 10
overall metal suppliers (covering rolling slabs, extrusion billets, primary, high purity, scrap and hardeners) have been long-
standing suppliers to our plants, and in many cases, for more than 10 years. In aggregate, the top 10 suppliers accounted for
approximately 50% of our total metal purchases (in terms of volumes) for the year ended December 31, 2024. We typically
enter into annual or multi-year contracts with these metal suppliers pursuant to which we purchase various types of metal,
including:
Primary metal from smelters or metal traders in the form of ingots, rolling slabs or extrusion billets.
Remelted metal in the form of rolling slabs or extrusion billets from external cast-houses, to supplement the
capacity of our own internal cast-houses.
Production scrap from customers and scrap traders.
End-of-life scrap (e.g., used beverage cans) from customers, collectors and scrap traders.
Specific alloying elements and primary ingots from producers and metal traders.
Our operations use energy in the forms of natural gas and electricity, which represents the third largest component of our
cost of sales, after metal costs and labor costs. We purchase energy from the natural gas and electricity markets and typically
secure a large part of our needs pursuant to fixed-price commitments. To reduce the risks associated with our natural gas and
electricity requirements, we primarily use forward contracts with our energy suppliers, and to a lesser extent, forward contracts
or financial futures with the financial markets, to fix the commodity component of the energy costs. Furthermore, in our longer-
term sales contracts, we aim to include indexation clauses on energy prices. From time to time, we may experience fluctuations
in energy costs in the periods of higher volatility.
Our Customers
Our customer base includes some of the leading manufacturers in the aerospace, packaging and automotive end-markets.
We have a relatively diverse customer base with our 10 largest customers representing approximately 55% of our revenue for
the year ended December 31, 2024. We generally have long-term relationships with our large customers, many of which span
decades.
We see our relationships with our customers as partnerships. In each of our end markets, we closely collaborate with our
customers to complete a rigorous product qualification process, which requires substantial time and investment and creates high
switching costs. In addition, our product portfolio is predominantly focused on high value-added products, which tend to
require close collaborations with our customers to develop technically advanced and tailored solutions to meet their evolving
requirements. The significant effort and investment to adhere to rigorous qualification procedures, the close collaborations on
technical development and customized offerings, and the focus on product quality and service reliability enable us to foster
long-term and mutually beneficial relationships with our customers.
Competition
The worldwide aluminum rolled and extruded industry is highly competitive. We believe the most important competitive
factors in our industry are product quality, price, timeliness of delivery and customer service, geographic coverage and product
innovation. Aluminum competes with other materials such as steel, glass, plastics and composite materials for various
applications. The key competitors in our Aerospace & Transportation operating segment are Arconic Corporation, AMAG
Austria Metall AG, Commonwealth Rolled Products, Inc., Kaiser Aluminum Corporation, Novelis Inc. and Universal Alloy
Corporation. The key competitors in our Packaging & Automotive Rolled Products operating segment are Arconic Corporation,
Commonwealth Rolled Products, Inc., Kaiser Aluminum Corporation, Novelis Inc., Speira GmbH and Tri-Arrows Aluminum
Inc. The key competitors in our Automotive Structures & Industry operating segment are Benteler International AG, Gestamp
Automoción, S.A., Magna International Inc., Metra Aluminum Inc., Norsk Hydro ASA, Otto Fuchs KG, Sankyo Tateyama, Inc.
and UACJ Automotive Whitehall Industries, Inc.
Seasonality
Customer demand in the aluminum industry is seasonal due to a variety of factors, including holiday seasons, weather
conditions, economic and other factors beyond our control. Our volumes are impacted by the timing of the holiday seasons in
particular, with the lowest volumes typically delivered in August and December and highest volumes delivered in January to
June. Our business is also impacted by seasonal slowdowns and upturns in certain of our customers’ industries. Historically, the
can industry is strongest in the spring and summer seasons and the automotive and aerospace sectors encounter slowdowns in
both the third and fourth quarters of the calendar year.
Research and Development ("R&D")
We have three R&D centers located in Voreppe, France, Plymouth, Michigan and Brunel University, London, United
Kingdom. We engage in R&D to develop new products, improve our processes, and support the objectives of our customers.
We invested$49 million, $52 million and$46 million in R&D in the years ended December 31, 2024,2023 and 2022,
C-TEC, our world-class R&D center located in Voreppe, primarily serves our A&T and P&ARP operating segments and
specializes in product and process development, product testing and technical assistance to our plants and customers. Our
industry-leading R&D centers in Plymouth and in Brunel provide support to our North American and European automotive
customers in the AS&I and P&ARP operating segments by addressing specific market requirements related to our aluminum-
based automotive lightweighting solutions.
Intellectual Property
We actively review intellectual property arising from our operations and our research and development activities and,
when appropriate, apply for patents in the appropriate jurisdictions. We currently hold more than 250 active patent families and
regularly apply for new ones. While these patents and patent applications are important to the business on an aggregate basis,
we do not believe any single patent family or patent application is critical to thebusiness. In connection with our collaborations
with universities and other third parties, we occasionally obtain royalty-bearing licenses for the use of third-party technologies
in the ordinary course of business.
Insurance
We have implemented a corporate-wide insurance program consisting of both master policies with worldwide coverage and
local policies where required by applicable regulations. Our insurance coverage includes: (i) property damage and business
interruption; (ii) general liability including operation, professional, product and environment liability; (iii) aviation product
liability; (iv) marine cargo (transport); (v) business travel and personal accident; (vi)construction all risk; (vii) automobile
liability; (viii) trade credit; (ix) cyber risk; (x) workers’ compensation in the U.S.; and (xi) other specific coverages for
executive and special risks. We believe that our insurance coverage terms and conditions are customary for a business such as
Constellium and are sufficient to protect us against catastrophic losses. We also purchase and maintain insurance on behalf of
our directors and officers.
Governmental Regulations and Environmental, Health and Safety Matters
Our operations are subject to a number of international, national, state and local regulations relating to the protection of the
environment and to workplace health and safety. Our operations involve the use, handling, storage, transportation and disposal
of hazardous substances, and accordingly we are subject to extensive laws and regulations governing emissions to air,
discharges to water emissions, the generation, storage, transportation, treatment or disposal of hazardous materials or wastes
and employee health and safety matters. In addition, prior operations at certain of our properties have resulted in contamination
of soil and groundwater which we are required to investigate and remediate pursuant to applicable environmental, health and
safety ("EHS") laws and regulations. Environmental compliance at our key facilities is supervised by the relevant local agencies
in the jurisdictions where we operate. Violations of EHS laws and regulations, and remediation obligations arising under such
laws and regulations, may result in restrictions being imposed on our operating activities as well as fines, penalties, damages or
other costs. Accordingly, we have implemented EHS policies and procedures to protect the environment and ensure compliance
with these laws and regulations, and we incorporate EHS considerations into our planning for new projects. We perform regular
risk assessments and EHS reviews. We closely and systematically monitor and manage situations of noncompliance with EHS
laws and regulations and cooperate with authorities to address any noncompliance issues. We believe that we have made
adequate reserves with respect to our remediation and compliance obligations. Nevertheless, new regulations or other
unforeseen increases in the number of our non-compliant situations may impose costs on us that may have a material adverse
effect on our financial condition, results of operations or liquidity.
We accrue for costs associated with environmental investigations and remedial efforts when it becomes probable that we
are liable and the associated costs can be reasonably estimated. The aggregate close down and environmental remediation costs
provisions at December 31, 2024 were$92 million. All accrued amounts have been recorded without giving effect to any
possible future recoveries. With respect to ongoing environmental compliance costs, including maintenance and monitoring, we
expense the costs when incurred.
We have incurred, and in the future will continue to incur, operating expenses related to environmental compliance. As part
of our general capital expenditure plan, we expect to incur capital expenditures for other capital projects that, in addition to
improving operations, also reduce certain environmental impacts such as energy consumption, air emissions, water releases,
and waste streams optimization. Capital expenditures for existing facilities for environmental control were approximately $16
million in 2024.
Human Capital
As of December 31, 2024, we employed approximately 12,000 employees. In addition, we contracted with approximately
500 temporary workers. Approximately 90% of our employees were engaged in production and maintenance activities and
approximately 10% were employed in support functions. Approximately 25% of our employees were employed in the United
States, 35% in France, 20% in Germany, 6% in Switzerland, and 14% in Eastern Europe and other regions. Approximately 50%
of U.S. employees and a majority of non-U.S. employees are covered by collective bargaining agreements. These agreements
are negotiated on site, regionally or on a national level, and are of different durations. In the U.S., for the year ended December
31, 2024, there was no extension to any of our collective bargaining agreements and no new collective bargaining agreements
were negotiated or ratified.
We are committed to creating a great place to work where all employees can thrive and have equal access and opportunity
to develop. In living our company values, our people strategy reflects the importance of safety being our first and foremost
concern followed by trust, transparency, respect, empowerment, and collaboration. We actively recruit high-potential
candidates, engage our employees through ongoing communication, provide access to learning and leadership programs, and
value the broad-reaching abilities and skills our employees possess. As a global organization, we empower our teams to make
decisions and implement practices culturally and legally aligned with local practices and law. While we have a global
philosophy that influences many aspects of human rights and employment, it is not intended to replace or interfere with local
dialogue, regulations and negotiation practices. We continually evaluate and assess our human rights practices and potential risk
through a Human Rights Impact Assessment at least every five years.
Labor Practices and Policies
Safety. Safety is our utmost priority. Our industry requires material, equipment, and processes that may pose risks to the
health and safety of our employees, contractors, and visitors, so we have defined and implemented strict policies and processes
to protect everyone in our facilities. The goal is to achieve zero injuries and illnesses by integrating safety into all aspects of our
business. Constellium’s environmental, health and safety ("EHS") management system is described in our EHS FIRST policy
and manual, and our EHS directives and guidelines.
Health. Over the last several years we have implemented various wellness programs and policies across the organization to
bring awareness to health and wellness. We routinely assess the Company’s paid leave, vacation, and other policies and
practices to help provide employees with greater access to resources to help support a healthy lifestyle.
Labor Union Affiliations. Employees have the right to organize and bargain collectively with Constellium and engage in
other protected activities. We work in connection with the works councils and unions to negotiate outcomes that benefit
employees and the business in alignment with local legal frameworks. We encourage open dialogue and enter into these
discussions with trust, respect and collaboration in mind.
Recruiting, Training, Development & Retention
Recruiting. Constellium is committed to attracting, developing, and retaining top talent. We actively recruit individuals
with diverse backgrounds and experiences who share our passion for shaping a sustainable future through advanced aluminum
solutions. Our recruitment strategy emphasizes promoting a culture of inclusion, continuous learning, and career advancement
opportunities. In 2024, we expanded our recruiting initiatives, increasing our number of university partnerships while
optimizing and enhancing our digital recruitment tools and recruitment marketing efforts.
Training, Development and Retention. We have developed a global learning and development program, Constellium
University, which is designed to foster a unified learning culture across all levels of the organization from shop floor employees
to executive leadership. Initiatives included in Constellium University include: Constellium University learning platform, global
engineering development program, leadership development program, the executive leadership program and global mentorship
program. In 2024, our Constellium University approach has received the Gold Award from the Brandon Hall Group, an external
selection jury, recognizing the quality and the impact for employees and the business of our different global programs.
Available Information
Beginning in 2025, we have voluntarily elected to file with the SEC annual reports on Form 10-K, quarterly reports on
Form 10-Q, and current reports on Form 8-K, and all amendments to those reports, instead of filing the reporting forms
available to foreign private issuers. Prior to 2025, we filed or furnished periodic and current reports with the SEC on the
reporting forms available to foreign private issuers, namely Form 20-F and Form 6-K. Beginning in 2025, we also intend to
voluntarily file with the SEC a proxy statement for our Annual General Meeting prepared in accordance with applicable French
requirements and voluntarily include certain disclosures required pursuant to Schedule 14A of the Exchange Act. The SEC
maintains an Internet website that contains reports and other information about issuers, like us, that file electronically with the
SEC. The address of that site is www.sec.gov. We will also make available on our website, free of charge, our SEC filings as
soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Our website address is
www.constellium.com. The information contained on our website is not incorporated by reference in this document.
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