Aug. 21, 2013
Alcoa Curtailing More Smelting Capacity
Aluminum giant Alcoa will close or curtail 164,000 metric tons of smelting capacity in the United States and Brazil as part of its smelting capacity review announced in May.
One potline representing 40,000 metric tons at the Massena East plant in New York will be permanently closed. In addition, the company has started to temporarily curtail 124,000 metric tons at its smelters in Brazil. The closures and curtailments will be complete by the end of September.
"We committed in May to review our global smelting capacity for possible curtailment to maintain the company's competitiveness," says Bob Wilt, president of Alcoa's Global Primary Products. "Aluminum prices, including premiums, have fallen to four-year lows, and we continue to operate in an uncertain, volatile market."
To date, Alcoa has announced closures or curtailments representing 269,000 metric tons of the 460,000 metric tons placed under review in May. This includes the permanent closure of 105,000 metric tons of capacity announced earlier at Alcoa’s Baie-Comeau smelter in Canada. In addition, the company permanently closed its Fusina, Italy, smelter representing 44,000 metric tons that was not part of the May review.
Once the Massena and Brazil closures and curtailments are complete, Alcoa will have idled 16 percent, or 646,800 metric tons, of its smelting capacity.