Alcoa Corp. on Wednesday said it reached an agreement which will curtail operations at its San Ciprian smelter in Spain for two years, with a commitment to begin restarting the facility in January 2024.
Alcoa said the agreement with workers' representatives at the aluminum plant is "aimed at resolving ongoing challenges that stem from exorbitant energy prices."
The deal will see the curtailment activity at the facility, which has 228,000 metric tons of annual capacity, begin Jan. 1, with the goal of completion before the end of that month, Alcoa said.
While the facility is curtailed, Alcoa said, it will "seek to secure as soon as possible long-term power purchase agreements, beginning from 2024."
Alcoa said it expects to record restructuring-related charges in the fourth quarter 2021 of about $60 million, pre- and after-tax, or 32 cents a share. The company said about half of the costs will be paid in each of 2022 and 2023.
Alcoa also said it committed $68 million for capital investments and $35 million for restart costs at the facility.
As part of the deal, workers agreed to cease a strike action that affected the smelter and the alumina refinery, Alcoa said. The company also said it will provide employees full wages and benefits during the curtailment period and "provide a new collective bargaining agreement which includes pay increases extending to the end of 2025." Alcoa will also extend the contracts of contractor companies through 2024, it said.
While the smelter is curtailed, "the casthouse will continue to operate, and the San Ciprian alumina refinery will continue to operate normally," Alcoa said.
关注我们