Alcoa has announced it will curtail 147,000 metric tonnes of smelting capacity at its São Luís (Alumar) and Poços de Caldas smelters in Brazil due to challenging global market conditions in primary aluminum and increased costs that have made the smelters uncompetitive.
01 Apr 2014 | 3613 Views | By Autocar Pro News Desk
Alcoa has announced it will curtail 147,000 metric tonnes of smelting capacity at its São Luís (Alumar) and Poços de Caldas smelters in Brazil due to challenging global market conditions in primary aluminum and increased costs that have made the smelters uncompetitive. The curtailments are expected to be complete by ...
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Alcoa has announced it will curtail 147,000 metric tonnes of smelting capacity at its São Luís (Alumar) and Poços de Caldas smelters in Brazil due to challenging global market conditions in primary aluminum and increased costs that have made the smelters uncompetitive. The curtailments are expected to be complete by the end of May 2014.
In 2013, the company curtailed 34,000 metric tonnes at Poços and 97,000 metric tons at São Luís. The new curtailments will include the remaining 62,000 metric tonnes of capacity from the Poços smelter, resulting in a full curtailment of its three potlines. Another 85,000 metric tonnes will be curtailed at São Luís.
“Across the globe, we are taking measures to curtail high-cost smelting capacity that is not competitive and reshape our cost profile,” said Bob Wilt, president of Alcoa Global Primary Products. “These are difficult but necessary actions in support of Alcoa’s strategy to lower the cost base of our upstream businesses.”
As a result of the smelter curtailment, the Poços refinery will also reduce production accordingly. The mine, aluminum powder plant and casthouse at Poços will continue normal operations, as will the refinery at São Luís. Other Alcoa operations in Brazil are not affected.
In May 2013, Alcoa placed 460,000 metric tonnes of smelting capacity under review. Once all announced curtailments and closures are complete, Alcoa will have approximately 800,000 metric tonnes, or 21 percent, of smelting capacity offline.