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Mining Weekly reported that Alcoa (NYSE:AA) is reducing its aluminum smelting capacity by 503,000 tonnes and its refining capacity by 1.2 million tonnes, mainly at US operations.
Mining Weekly reported that Alcoa (NYSE:AA) is reducing its aluminum smelting capacity by 503,000 tonnes and its refining capacity by 1.2 million tonnes, mainly at US operations.
As quoted in the market news:
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.
