Kaiser Aluminum’s board of directors has approved an expenditure of $13.7 million at its 65 percent-owned Alpart alumina refinery to improve efficiency and support the previously announced expansion of annual production capacity to 1.65 million metric tons.
The spending covers two separate projects, both of which are scheduled for completion by the end of next year: a new dual-feed system will enable the facility to more efficiently process different grades of bauxite and a new cooling system will improve alumina quality.
The total cost of the two projects is estimated at $21 million, 35 percent of which is funded by Alpart's minority-interest owner, Hydro Aluminium AS.
Jack Hockema, Kaiser’s president and CEO, said, "Continued capital investment in efficiency, quality, and growth initiatives is essential for our ongoing efforts to strengthen the company and emerge from Chapter 11. These two projects, in particular, are key elements of Alpart's aggressive plan for significant improvement in operating performance and market position. The investment reflects our faith in the Jamaican government's commitment to support ongoing improvements in the competitive position of this key national industry. In addition, we are pleased with our board's approval -- and with the support that these projects have received from the committees with whom we are working in our Chapter 11 case."