Alcoa Inc., the multinational aluminum company known for its lightweight metals and advanced manufacturing techniques, is dividing into two independent and publicly-traded companies. The aluminum giant's move aims to bolster its growth amid a difficult operating backdrop.

On Monday, Alcoa Inc. announced the separation after its traditional smelting business has been affected by the growing surplus of aluminum, which has caused prices to drop and expanded the industry's worst crisis in years. According to Reuters, the company also announced that the move was brought by the divergence and incompatibility of aluminum operations and automotive businesses.

While Alcoa Inc. tried its best to address these diverging trends, it resulted in conflicting messages for the investors of the world's third-largest aluminum producer.

Meanwhile, the separation, which will take place in the second half of 2016, will result in the creation of two standalone, Fortune 500 companies — "The Upstream Company" and "The Value-Add Company." Nasdaq revealed the Upstream Company will consist of bauxite, alumina, aluminum, casting and energy business units. While the Value-Add Company will include global rolled products, engineered products and solutions, and transportation and construction solutions businesses.

Post-separation, Alcoa CEO Klaus Kleinfeld will lead the Value-Add Company as its Chairman and CEO. Kleinfeld will also serve as Chairman of the Upstream Company during the initial phase to ensure a smooth transition. However, both companies will have their own independent boards and will allow both companies to pursue their own independent strategies.

The separation marks the completion of Alcoa's multi-year transformation. As part of its portfolio transformation strategy, Alcoa is increasingly looking for expansion opportunities beyond its legacy primary aluminum business and diversify into other materials such as those (nickel and titanium-based) used to make aircraft parts.

In 2015, Alcoa Inc. has made a series of acquisitions and investments to shore up its capabilities to accommodate the aerospace and automotive end markets. As per Forbes, the company sees a firm nine-year order book in the aerospace segment. Furthermore, the aluminum demand from the automotive sector is set to increase at a fast pace, given rigorous emissions regulation that are pushing automakers to upturn the content of lighter materials including aluminum in their vehicles.

In the Alcoa Inc. separation, Morgan Stanley MS and Greenhill & Co. GHL are acting as financial advisors while Wachtell, Lipton, Rosen & Katz is serving as legal advisor on the deal.