Alcoa (NYSE:AA) sent out a press release today, November 2nd, announcing it is taking steps to reduce its production in order to “curtail uncompetitive smelting and refining capacity to ensure continued competitiveness amid prevailing market conditions.”
Alcoa will idle three of its four US smelters, including Ferndale’s Alcoa Intalco Works.
In its aluminum business, Alcoa will idle the Intalco and Wenatchee primary aluminum smelters in Washington State, and the Massena West smelter in New York.
The casthouses at Intalco and Massena West, which produce value-add shaped products, will continue to operate.
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Reuters recently reported aluminum prices had hit a new six-year low.
Executive Vice President and President, Global Primary Products Roy Harvey is quoted in the announcement, “Alcoa has a long, proud history at the affected locations and our dedicated employees have worked hard to keep our facilities competitive in the face of challenging market conditions. Unfortunately, today’s pricing environment necessitates very difficult decisions. We recognize how deeply these decisions affect our Alcoa family and communities and are committed to working closely with our employees and unions and local stakeholders to support them through this transition.”
As for timing, the reductions will begin in the fourth quarter of 2015 and be completed by the end of the first quarter of 2016.
According to Alcoa Casting and GPP – US Communications Director Josh Wilund, “The plant employs 583, and employees will be retained to operate the casthouse and for maintenance of the plant. We are finalizing details, but expect to retain more than 100 employees.”
Alcoa operates in 30 countries around the world as a provider of lightweight metals technology, engineering and manufacturing.