Alcoa to Curtail Refining Capacity
Reduction in line with smelter curtailments announced earlier this
year
Alcoa (NYSE: AA) announced today that the Company will reduce its annual
alumina production capacity by approximately 390,000 metric tons to
align production with smelter curtailments Alcoa announced earlier this
year and to reflect prevailing market conditions.
The curtailments will reduce Alcoa′s refining capacity in the Atlantic
region by about 4 percent and are already underway. The Atlantic region
represents about 50 percent of Alcoa′s total global refining capacity of
18 million metric tons per year.
'Alcoa is taking these steps to avoid aggravating alumina oversupply in
the Atlantic region and to enhance the efficiency of our refining
system,? said Chris Ayers, president of Alcoa′s Global Primary Products.
'We will continue to monitor market conditions and will take further
action if warranted.?
In January of this year, Alcoa announced the closure or curtailment of
531,000 metric tons of smelting capacity. Of that, 291,000 represented
the permanent closure of capacity in Tennessee and Texas that had been
idled since 2009. Another 240,000 metric tons, or 5 percent of Alcoa′s
smelting capacity, represented curtailments to be taken in Portovesme,
Italy and La Coruña and Aviles, Spain.
Alcoa has reached agreement with government authorities and unions in
both Italy and Spain on the curtailments. The 90,000 metric ton
curtailment in the Spanish smelters has started and is scheduled to be
complete by the first half of this year. The smelter in Portovesme,
Italy, with a capacity of 150,000 metric tons, will finalize curtailment
by the end of the year.
About Alcoa
Alcoa is the world′s leading producer of primary and fabricated
aluminum, as well as the world′s largest miner of bauxite and refiner of
alumina. In addition to inventing the modern-day aluminum industry,
Alcoa innovation has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa ? wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa′s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for 10 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 31
countries across the world. More information can be found at www.alcoa.com.
Forward-Looking Statements
Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements involving
known and unknown risks and uncertainties that may cause actual results,
performance, or achievements of Alcoa to be different from those
expressed or implied in the forward-looking statements. These statements
may be identified by the use of predictive, future-tense, or
forward-looking terminology, such as 'expects,? 'intends,? 'is scheduled
to,? 'plans,? 'should,? 'will,? or other words of similar meaning. All
statements that reflect Alcoa′s expectations, assumptions, or
projections about the future other than statements of historical fact
are forward-looking statements, including, without limitation, forecasts
concerning aluminum industry conditions, anticipated schedules for
completion of curtailments, and statements about Alcoa′s strategies,
objectives, goals, targets, outlook, and business and financial
prospects. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include: (a)
material changes in aluminum industry conditions, including global
supply and demand conditions and fluctuations in London Metal
Exchange-based prices for primary aluminum, alumina, and other products;
(b) changes in economic conditions generally, in the global financial
markets, or in the markets served by Alcoa, including aerospace,
automotive, commercial transportation, building and construction,
packaging, consumer electronics, and industrial; (c) Alcoa′s inability
to complete its smelting and refining capacity curtailments as planned
and by scheduled completion dates, whether due to changed circumstances,
governmental or regulatory requirements, labor issues, or other reasons;
(d) political, economic, and regulatory risks in the countries in which
Alcoa operates; and (e) the other risk factors summarized in Alcoa's
Form 10-K for the year ended December 31, 2011 and other reports filed
with the Securities and Exchange Commission. Alcoa disclaims any
intention or obligation to update publicly any forward-looking
statements, whether in response to new information, future events or
otherwise, except as required by applicable law.
Alcoa Inc.
Investor Contact
Kelly Pasterick, 212-836-2674
or
Media
Contact
Libby Archell, 212-836-2719
