PERTH (miningweekly.com) – Aluminum major Alcoa has announced the reduction of 503 000 t of smelting capacity and 1.2-million tonnes of refining capacity, mostly in the US.
The company said this week that it would idle the Intalco and Wenatchee primary aluminium smelters, in Washington, and the Massena West smelter, in New York.
It also decided against modernising the Massena East smelter, which would be permanently closed. The project’s potlines have been closed since March 2014.
In its alumina business, Alcoa would partially curtail refining capacity at the Pt Comfort facility, in Texas.
“Across the globe, we have been taking measures to curtail smelting and refining capacity that is not competitive to improve our cost profile,” Alcoa VP and president for global primary products Roy Harvey said.
“Alcoa has a long, proud history at the affected locations and our dedicated employees have worked hard to keep our facilities competitive in the face of challenging market conditions. Unfortunately, today’s pricing environment necessitates very difficult decisions.”
Once the latest round of closures have been implemented, Alcoa would have curtailed or closed 673 000 t of uncompetitive smelting capacity and 2.5-million tonnes of refining capacity since it announced a review of 500 000 t of smelting capacity and 2.8-million tonnes of refining capacity in March.
The most recent restructuring was expected to result in costs of between $160-million and $180-million after tax, of which nearly 30% would be noncash.