Alcoa Corporation will permanently close its Point Comfort alumina refinery in Texas, which has been idled since 2016.
The refinery, which had 2.3 million tonnes of annual alumina capacity, is a part of Alcoa World Alumina and Chemicals (AWAC), a group of companies owned 60 percent by Alcoa and 40 percent by Alumina Limited.
{alcircleadd}
Alcoa President and Chief Executive Officer Roy Harvey said: “We operate one of the world’s largest alumina refining systems, and we are committed to maintaining our strong, first-quartile position. While this decision is difficult because of the long history of operations in Point Comfort, we must eliminate unprofitable capacity and continue to improve our Company for the long term.”
In October, the company announced that it was conducting a review of its global production capacities to drive lower costs and sustainable profitability. The review includes 4 million tonnes of alumina capacity or approximately 27 percent of Alcoa’s total global refining capacity.
In the fourth quarter of 2019, Alcoa will record restructuring charges of approximately $175 million related to the permanent closure.
Beginning in 2020, the company expects the closure to result in annual net income improvement of approximately $15 million and cash savings of approximately $10 million (Alcoa’s share) when compared to the ongoing spend for curtailment, exclusive of closure costs, Alcoa said.
Responses
