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Alcoa to curtail smelting capacity in Brazil
- March 30, 2015
- News Release
- Metals/Materials
Lightweight metals manufacturer Alcoa, New York, has announced it will curtail the remaining 74,000 metric tons of smelting capacity at its São Luís (Alumar) facility in Brazil. The decision is aligned with the company’s recent announcement to evaluate upstream capacity for possible curtailment, closure, or sale as Alcoa further optimizes its commodity portfolio. The curtailment is expected to be complete by April 15, 2015.
“We continue to take decisive steps to create a globally competitive commodity business and are executing against our upstream capacity review,” said Bob Wilt, president of Alcoa’s Global Primary Products. “These are difficult but necessary actions in support of Alcoa’s strategy to lower the cost base of our upstream businesses.”
This curtailment adds to the 85,000 metric tons of capacity idled at São Luís in May 2014 and the 12,000 metric tons curtailed in October 2014. Challenging global market conditions in primary aluminum production and increased costs have made the smelter uncompetitive. The refinery at São Luís is unaffected and will continue normal operations.
Once the São Luís facility is curtailed, Alcoa will have approximately 740,000 metric tons, or 21 percent, of its smelting capacity offline.
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