Alcoa to curb aluminium output in Spain as energy costs soar
Alcoa recently welcomed a majority vote, from workers at the San Ciprian plant in Galicia, backing the proposal to halt output until the end of 2023.
Alcoa’s plant in Spain is the latest casualty of the dramatically increasing energy prices in Europe. The company is set to hit pause on primary production of aluminium as spiking costs continue to put financial pressure on heavy industries. Earlier this month, output was trimmed by Aluminium Dunkerque Industries France, the regions top metal smelter.
A company spokesperson said the shutdown plan offers a chance for a viable future for the troubled plant. For several years Alcoa has deemed the smelter ‘uncompetitive’ and has been trying to close operations for an extended time.
The company has claimed it is committed to providing full wages and benefits to employees over the 2-year closure. They said they are expecting fourth quarter 2021 restructuring-related charge of approximately $US60 million.
“This has been a challenging road for everyone involved. With this agreement, we now have a path to resolve the significant challenges that the facility has faced and can begin to build a stronger smelter in two years,” Chief Executive Roy Harvey said in the statement released after the close of trading on Wednesday.
The plant, however, will continue supplying strategic clients within the pharmaceutical and food industries through remelting aluminium, while maximising production of 65,000 tonnes per year and producing over 25,000 tonnes of aluminium slab.
More recently, Alcoa signed a pre-agreement with Greenalia SA, providing the plant with green energy from 2024 for a period of 10 years.