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Alcoa Announced Strategic Review of Smelting and Refining Capacity

The company said over the next twelve months it will re­view 500 000 t of smelting capacity and 2,8 Mt of refining capacity for possible cur­tailment or divestiture. The review will in­clude facilities across the Alcoa system. The potential actions could affect 14 % of Alcoa’s global smelting capacity and 16 % of its global refining capacity. Currently, the company has 19 %, or 665 000 t, of smelt­ing capacity and 7 %, or 1,2 Mt, of its global refining capacity idle. Bob Wilt, President of Alcoa’s Global Primary Products stated: “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 to 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 will consider a wide variety of 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. In its Primary Metals business, the company has curtailed, closed or sold 1,3 Mt, or 31 %, of its highest cost global smelting capacity since 2007.


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