Aluminum producer Alcoa Inc said on Thursday its split into two publicly traded companies is expected to be effective November 1, after the company's board approved the separation.

Alcoa said last year it would break itself in two, separating a faster growing plane and car parts business from the traditional aluminium smelting and refining operations, as shareholders sought higher returns amid a commodity slump.

The aluminium producer had said it would change its name to Arconic Inc and focus on engineering products for aerospace and automotive businesses, and spin off its smelting and refining divisions into a new company, Alcoa Corp.

The board of directors of each company will review and determine the dividend policy of each company, following the completion of the separation, Alcoa said on Thursday.

Alcoa said it will hold a special shareholder meeting on October 5 to seek approval of a reverse split of common stock at a ratio of 1 for 3 and authorised share count reduction.

If the reverse stock split is approved, shareholders will receive one share of Alcoa Corp common stock for every three shares of Alcoa Inc common stock held as of October 20, at the time of separation.

If the reverse stock split is not approved, Alcoa Inc shareholders will receive one share of Alcoa Corp common stock for every nine shares of Alcoa Inc common stock held as of the record date. - Reuters