The largest U.S. aluminum producer, Alcoa Inc. (NYSE:AA) and its partner, Ma’aden, a Saudi Arabian mining company, have begun construction of a joint venture rolling mill in Ras Az Zawr, Saudi Arabia.

The rolling mill is part of a larger, $10.8 billion joint venture project that includes a bauxite mine, an alumina refinery and an aluminum smelter on Saudi Arabia’s eastern coast. Ceremonies were held to mark the official groundbreaking at the refinery and the pouring of the first concrete at the aluminum rolling mill.

The 380,000 ton rolling mill will produce food grade can sheet which has many applications including the manufacture of beverage cans.

The complex will mine bauxite and refine the ore into alumina, which will be processed at a 740,000 metric-ton-a-year smelter.

Ma’aden owns 75% of the venture and Alcoa owns 25%. Alcoa provides technical expertise for the refinery, smelter and mill and Saudi Arabia is building infrastructure for the project including a port, rail line and power plant.

Commercial production from the smelter and mill is expected in 2013, and the mine and refinery are set to start production in 2014. Alcoa will supply the smelter with alumina in the interim period.

Recently, Alcoa released its financial results for the second quarter of 2011. The company reported adjusted earnings per share of 32 cents, missing the Zacks Consensus Estimate of 34 cents.

Revenues for the quarter were up 27% year over year to $6.585 billion, outpacing the Zacks Consensus Estimate of $6.434 billion. The increase was due in part to higher alumina shipments, and higher realized pricing for both alumina and aluminum.

The company posted improved profits across all its segments. This was followed by revenue growth of 13% in packaging, 6% in aerospace, 12% in building and construction, 16% in commercial transportation, 9% in industrial products, 8% in industrial gas turbines and 5% in automotive.

The company’s adjusted EBITDA of $1.04 billion was up 44% year over year.

Alcoa reaffirmed its forecast for a 12% growth in global aluminum demand in 2011. Looking ahead, Alcoa projects continued growth in all major end- markets on a global basis, including aerospace (7%), automotive (4-8%), commercial transportation (7-12%), packaging (2-3%), building and construction (1-3%), and industrial gas turbines (5-10%).

For the year, Alcoa projects aluminum demand to grow 12% on top of the 13% growth witnessed in 2010. Alcoa projects that from a 2010 baseline, aluminum demand would double by 2020 on a 6.5% annual growth.

Currently, Alcoa has a short-term (1 to 3 months) Zacks #3 Hold rating and a long-term (6 months) Neutral recommendation.

Alcoa faces stiff competition from Aluminum Corporation Of China Limited (NYSE:ACH), Rio Tinto Plc. (NYSE:RIO) and BHP Billiton Ltd. (NYSE:BHP).