Alliant Buys Rocket Propulsion Systems Unit

Alcoa Inc., the world’s largest producer of aluminum, said it is selling its rocket propulsion systems operation to aerospace and ammunitions company Alliant Techsystems Inc. for $685 million in cash. The sale of the Alcoa unit, Thiokol Propulsion, is expected to close by the end of the second quarter. The addition of Thiokol Propulsion, a supplier of rocket propulsion systems for space launch vehicles, should bolster Alliant’s aerospace unit, which provides composite structures for launch vehicles as well as military and commercial aircraft, satellites and spacecraft. Separately, Alcoa said it would cut costs by $1 billion over the next three years by eliminating waste and increasing productivity. A 1998 plan to cut $1.1 billion in annual costs was completed in December, officials said. Shares of Hopkins, Minn.-based Alliant rose $1.01 to close at $69.30, while Alcoa gained $1.32 to close at $36.74, both on the NYSE.