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Alcoa to Close or Curtail 164000 t in the United States and Brazil

One potline representing 40 000 t at the Massena East plant in New York will be permanently closed. In addition, the company has started to temporarily curtail 124 000 t at its smelters in Brazil. The closures and curtailments will be complete by the end of September. Bob Wilt, President of Alcoa’s Global Primary Products, said “aluminum prices, including premiums, have fallen to four-year lows and we continue to operate in an uncertain, volatile market.” In total, Alcoa has announced closures or curtailments representing 269 000 t of the 460 000 t placed under review in May. This includes the permanent closure of 105 000 t of capacity announced earlier at Alcoa’s Baie-Comeau smelter in Canada. In addition the company permanently closed its Fusina/IT smelter representing 44 000 t, that was not part of the May review. Once the Massena and Brazil closures and curtailments are complete, Alcoa will have 16 %, or 646 800 t of smelting capacity idle. Alcoa’s review of its primary metals operations is consistent with the company’s 2015 goal of lowering its position on the world aluminum production cost curve by 10 % and the alumina cost curve by 7 %. Total restructuring-related charges for the third quarter 2013 associated with the above actions are expected to be between USD 5 – 10 million after tax. (8/2013)

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