Alcoa to cut production delay new line at Quebec smelter
Post Date: 20 May 2013 Viewed: 389
Reuters reported that Alcoa Inc was permanently closing two potlines at its Baie Comeau smelter in Quebec with total capacity of 105,000 tonnes and delaying the construction of a new potline at the facility.
The shutdown, set for August, is part of a review of 460,000 tonnes of operating capacity, announced on May 1 due to weak aluminum prices and high costs. It now plans to put the site's new potline into service in 2019 rather than 2016.
The company said that the lines set for closure are among the highest-cost smelting capacity in the Alcoa system. It said the shutdown would cut greenhouse gas emissions at the plant by 40 percent. The potlines use Soderberg technology which is less energy efficient than newer ways of smelting aluminum.
Alcoa expects restructuring charges related to the closures of USD 135 million to USD 155 million or 11 cents to 13 cents a share on an after tax basis in 2013.
Ms Monica Orbe spokeswoman of Alcoa said that the Baie Comeau work force would be reduced by about 500 employees through retirements and attrition. Some 1,400 people work at the facility now.