Alcoa Inc. is immediately idling its aluminum smelter in Ferndale, Wash. The decision follows an agreement between the Pittsburgh-based company and the Bonneville Power Administration.
The planned operating rate at the smelter had been 115,000 metric tons a year, although total capacity is 270,000 metric tons per year.
As part of the agreements with the BPA, power contracted for the smelter between now and October 2001 will be sold back to the agency to meet regional demands for electricity.
In addition, Alcoa will return to the BPA about 90% of its electricity allocation between Oct. 1, 2001 and Sept. 30, 2003. In return, Alcoa will receive revenue to compensate most of its Intalco employees for wages and benefits. The remainder of Alcoa's electricity allocation will be used at the company's magnesium production facility in Addy, Wash., and for lighting, maintenance and security purposes at Intalco.
Alcoa's worldwide primary aluminum capacity is 4.1 million metric tons per year. With this action, Alcoa has 550,000 metric tons per year of idled capacity.