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Alcoa Inc., the largest U.S. aluminum producer, said the manufacturing business it's separating from the legacy smelting and refining unit will be called "Arconic."

Plans are on track to separate into two independent, publicly traded companies in the second half of 2016, according to a statement Tuesday. Alcoa's so-called downstream segments produce car parts, airplane wings and other high-performance products from the metal. The Alcoa name will be retained by the upstream business, which mines bauxite, refines alumina and smelts aluminum.

The New York-based producer announced the split in September. Alcoa has struggled with its smelting business amid a glut in aluminum as China, the world's biggest consumer, grows at its slowest pace in a generation. Aluminum prices dropped the most last year since 2008 in London trading.

Last month, Alcoa accepted Elliott Management Corp.'s three board nominees, adding members with aerospace and automotive experience before it divides its metal-making assets from those that make aluminum components. Elliott, the fund founded by Paul Singer, has expressed support for the split.

Alcoa shares slumped 5.4 percent to $9.15 at 2:33 p.m. in New York along with declines in industrial metal prices. The stock is down 33 percent in the past year.

• [Editor:tianyawei]