Alcoa
Inc.
said it would close or curtail 164,000 metric tons of smelting capacity in
Brazil and the U.S
The moves, which are part of a smelting-capacity review
the world's largest aluminum producer announced in May, will be completed by the
end of September, the company said
Alcoa will permanently close one potline--a crucial
component of smelting operations--representing 40,000 metric tons at its Massena
East plant in New York, and it will temporarily curtail 124,000 metric tons of
capacity at facilities in Brazil
In general, the industry has been cutting back on
production as it has struggled with a surfeit of supply and weak aluminum
prices
"Aluminum prices, including premiums, have fallen to
four-year lows and we continue to operate in an uncertain, volatile market," Bob
Wilt, Alcoa's global primary products president, said
Alcoa in May placed 460,000 metric tons of smelting
capacity under review, and, to date, 269,000 metric tons have been cut or
curtailed, it said
With the New York and Brazil moves, the company will have
16%, or 646,800 metric tons of smelting capacity idle
Alcoa, which reported a wider second-quarter loss in July
but still beat analyst expectations, said it expects total restructuring-related
charges related to the New York and Brazil closure and curtailments to be
between $5 million and $10 million after tax, or a penny a share, in the third
quarter
In May, Alcoa said it was delaying the construction of a
new potline at its Baie-Comeau smelter, now expecting it to launch in 2019,
rather than 2016
At the same time, the company said it was shutting two of the
plant's existing high-cost potlines
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