Alcoa to shut down Warrick smelter and curtail refining capacity at Point Comfort refinery

1464
Image credit: Alcoa

Leading lightweight metals manufacturer Alcoa announced that it will permanently close its 269,000 metric ton Warrick Operations smelter in the US, casting doubts over the future of some 600 workers at the plant.  

Image credit: Alcoa

The company said the decision to shut down the smelter was motivated by the challenging market conditions which saw Alcoa take measures to curtail smelting and refining capacity all across the globe in an effort to improve the competitiveness of its upstream business.

Roy Harvey, President of Alcoa’s Global Primary Products, said the closure of the Warrick Smelter will occur by the end of the first quarter of 2016, adding that the rolling mill and power plant at Warrick Operations will continue to operate.

“We recognise how deeply this decision impacts employees and we are committed to work closely with our employees, unions and community stakeholders to support them through this transaction,” Mr Harvey said.

Adertisement

“Despite the hard work of employees, these assets are not competitive. We’re confident that these actions are the tight ones in face of these challenging market conditions. We are committed to creating a resilient business ready for launch as an independent company in 2016.”

Alcoa also said it will curtail one million tonnes of alumina refining capacity by the end of the second quarter of 2016.

The curtailment includes the remaining 810 tonnes of production at the point Comfort refinery in Texas, which is part of the Alcoa World Alumina and Chemicals group of companies owned 60% by Alcoa and 40% by Alumina Limited.