UPDATE 1-Alcoa to close two more potlines in New York

Wed Jan 15, 2014 5:00pm EST

Related Topics

Jan 15 (Reuters) - Aluminum producer Alcoa Inc said on Wednesday it plans to permanently close the two potlines at its Massena East smelter in Massena, New York in the first quarter.

Alcoa closed one of Massena East's three potlines in August 2013. The company said the potlines were not competitive. Its Massena West facility is not affected.

Aluminum prices are hovering close to the cost of production for many of the world's smelters, and analysts have said more cuts are needed to reduce a global surplus of the metal and boost prices.

Wednesday's announcement, part of a review announced in May, will cut Alcoa's smelting capacity by 84,000 tonnes. It expects to take after-tax restructuring charges between $60 million and $70 million, or 6 cents a share, in the first quarter. About 40 percent of the charges will be non-cash.

Including Massena East, Alcoa has announced temporary shutdowns or permanent closures totaling 361,000 tonnes of annual capacity. The company said in May it was reviewing 460,000 tonnes of capacity.

Massena East employs 332 people, said Alcoa spokeswoman Monica Orbe in an email.

"We will work with the local unions to minimize the impact on jobs," she said.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.