The reaction Fe2O3(s) + 2Al(s) → 2Fe(s) + Al2O3(s) is known as the thermite reaction. It is a highly exothermic reaction, releasing a large amount of heat. Aluminum is more reactive than iron and displaces iron from its oxide, making it a displacement reaction. Fe2O3 is reduced (loses oxygen), so it acts as an oxidizing agent. The large amount of heat produced makes this reaction useful for welding, including joining railway tracks.