Alcoa closes Poços smelter in Brazil
Alcoa has announced that it will permanently close its Poços de Caldas primary aluminium smelter in Brazil from 30 June. The smelter has been curtailed since May 2014 and the underlying market conditions that led to the curtailment have not improved.
“The closure of the Poços smelter permanently removes a high-cost smelting facility from the Alcoa system and is another step in creating a more profitable Primary Metals business,” said Alcoa Global Primary Products President Bob Wilt.
Following the closure, Alcoa’s total global smelting capacity will be reduced by 96,000 metric tons, to 3.4 million metric tons. The Poços mine, refinery, aluminium powder plant and casthouse will continue normal operations.
As a result of the closure, Alcoa expects to record restructuring-related charges in second quarter 2015 between $100 million and $110 million after-tax, or $.08 to $.09 per share, of which approximately 60% is non-cash.