Lightweight metals technology, engineering and manufacturing firm, Alcoa has announced that it plans to permanently close its Portovesme primary aluminum smelter. This smelter, which is located in Carbonia-Iglesias, Italy, has been curtailed since November 2012 because it was one of the highest costing smelters in the Alcoa system with limited prospects for being competitive. The closure will reduce Alcoa’s global smelting capacity by 150,000 metric tons to 3.6 million metric tons per year.
“The fundamental reasons that made the Portovesme smelter uncompetitive unfortunately have not changed,” said Bob Wilt, President, Alcoa Global Primary Products. “We will continue to meet the commitments made to our employees and our stakeholders, acting in good faith as we have always done.”
As committed to the government and unios, Alcoa has provided financial social support, along with outplacement and re-employment services for employees.
The closure is aligned with Alcoa’s strategy to create a globally competitive commodity business and lower its position on the world aluminum production cost curve to the 38th percentile by 2016.
Total restructuring-related charges for third quarter 2014 as a result of the closure are expected to be between $170 million and $180 million after-tax.
SOURCE Alcoa
