Alcoa to Curtail Smelting at Brazilian Facility
Once the Sao Luís facility is curtailed, Alcoa will have about 740 Mt, or 21 %, of its smelting capacity, offline. As a result of the curtailment, the company expects to incur restructuring-related charges in the first quarter between USD 10 – 15 million after-tax, or 1 %-share. The company stated that it will evaluate 500 Mt of smelting capacity and 2800 Mt of refining capacity for possible curtailment, closure or sale. This curtailment adds to the 85 Mt of capacity idled at Sao Luis in May 2014 and the 12 Mt curtailed in October 2014. However, Alcoa stated that the refinery at Sao Luis will continue normal operations and will remain unaffected. Alcoa also announced that it intends to cut 443 Mt/a of alumina refining capacity at the Suralco facility in Suriname. Suralco, which is a part of the Alcoa World Alumina and Chemicals group of companies, is owned 60 % by Alcoa and 40 % by Alumina Limited. The company remains committed to working with the Suriname government in order to find the best solution for the Suralco facility.