The aluminum company Alcoa, headquartered in New York City and Pittsburgh, has announced that it will review 500,000 metric tons of its aluminum smelting capacity and 2.8 million metric tons of its aluminum refining capacity for possible curtailment or divestiture. The company says the review is being undertaken to continue to transform the company’s upstream portfolio to create a lower cost, globally competitive commodity business.
The review will include facilities throughout Alcoa’s global system.
The company says its potential actions could affect 14 percent of Alcoa’s global smelting capacity and 16 percent of its global refining capacity. Currently, Alcoa has 19 percent (665,000 metric tons) of its smelting capacity and 7 percent (1.2 million metric tons) of its global refining capacity idle.
“Alcoa continues to take decisive action, transforming its upstream portfolio to create a lower cost, globally competitive commodity business,” says Bob Wilt, president of Alcoa’s Global Primary Products. “Our goal is to move down the global aluminum cost curve to the 38th percentile and the global alumina cost curve to the 21st percentile by 2016. The results from this review will help achieve those goals. We’ll take action only after a thorough strategic review to determine the best outcome for our shareholders and in consultation with our stakeholders.”
When reviewing capacity, Alcoa says it will consider alternative actions, ranging from partial to full plant curtailments, permanent shutdowns or divestitures. Decisions on curtailments, closures or divestitures will be announced as reviews are completed.
Alcoa considers additional capacity cuts
Aluminum company says its reviewing 500,000 metric tons of smelting capacity and 2.8 million metric tons of alumina capacity.