Alcoa to shut Italy aluminium plants

Long Tail

It is reported that U.S. aluminium producer Alcoa Inc (AA.N) plans an orderly shutdown of its two Italian smelters by Feb. 6, despite government efforts to find energy at a competitive price.

The press release is quoted as saying:

The Italian government had presented the aluminum giant with an offer that would not necessarily forestall a smelter shutdown, but could lead to further discussions and a possible restart.In November, Alcoa said it would temporarily idle operations at the smelters with a total capacity of 194,000 tonnes a year after the European Commission ordered it to pay back most of the state aid it had received in Italy since 2006. As a result Alcoa anticipates a cash payment of $300-400 million and said it could not assume further financial risk.

Click here to access the entire press release