TORONTO (miningweekly.com) – US-based aluminium major Alcoa on Friday announced it would permanently close its Fusina primary aluminium smelter, in Venice, Italy, where production had been curtailed since June 2010.
The company said the planned closure would reduce its global smelting capacity of 4.2-million metric tons a year, by 44 000 t.
The intended closure was in addition to the 460 000 t of operating smelting capacity that Alcoa in May announced was under review.
“The underlying conditions that led Alcoa to curtail the Fusina smelter in 2010 have not fundamentally changed. Global aluminium prices remain weak and we must take action to maintain Alcoa’s competitiveness,” Alcoa global primary products president Bob Wilt said.
Alcoa said it would work with affected communities to explore ways to redevelop the closed smelter and would consult with local unions to put appropriate social support in place for the remaining 14 impacted employees.
The Alcoa Fusina rolling mill was operating separately from the smelter and was not affected by the closure.
Total restructuring-related charges for the second quarter as a result of the closure were expected to be between $30-million and $35-million after tax, or about $0.03 a share, of which about 50% was noncash.
Edited by: Creamer Media Reporter
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